sleeps. this is "squawk box." >> good morning everybody! i'm becky along with joe and andrew. it is a wintery mess in new york city this morning. so we are hoping for the best from punxsutawney phil. he'll come out of the hole for 129th groundhog day. it's a tradition we look forward to every year. if he sees his shadow and returns to the hole it means six more weeks of winter. if he doesn't, we'll take it as a sign of an early spring. we're hoping for clouds rain snow, anything that will keep him from seeing his shadow today. >> we have calm of other big stories we're watching. >> president obama officially proposing a 10-year budget. a 14% tax on u.s. companies overseas profits to finance a public works program. we'll talk more about the plan in a moment. also on the earnings front, here is going on.

we have exxonmobil that's the name to watch. it will post quarterly results and bring it to you. there's quilt of democratic data due out today. december personal income spending. ism manufacturing and construction spending. so a lot to talk about. >> and in corporate news this morning three major automakers will recall more than 2 million older vehicles to fix defects. the recall involves an issue that causes dir ss air bags to deploy when they're not supposed to. toyota fiat chrysler and honda. i don't know toyota with the dads. we love dads. >> it wasn't just toyota. >> there was another one. >> the dove -- appealing to your dad in stink when you're watching the super bowl. >> every dad is watching the game. >> it's captive audience. >> have a little, you know do something -- subtlety. >> yeah. >> anyway. >> i will admit i teared up

during one of the commercials. >> are you kidding me? i teared up because they were so unoriginal. i teared up when the horses protected that little puppy. i was hoping they would -- peta don't kill me. >> the girls loved that. it was their favorite ad. it was advertising beer and they can't drink. >> did you tear up with lindsay lohan? >> i liked that one a lot. she looked a little puffy. >> i wasn't sure it was her. >> i liked that. and i like walter white. anyway. the deadline -- man. we can't help it. the water cooler is here. the deadline to make a claim and the gm recall case passed. and the wall street journal reports that the victim's fund got a late rush of applicants. the costs are not expected to top the $400 to $600 million that gm set to cover them. and we will get more details at

the top of the hour from the fund administrator in a first on cnbc interview. i think phil will join us. >> yeah. >> not punxsutawney phil. he's somewhere else. >> he's busy this morning. >> we used to get a consensus of the different predictions from staten islands. de blasio killed the one we had here. >> yeah. >> how. >> yeah. >> he drooped it. >> dropped it on the head. >> yeah. from 6'4" or 6'6". >> it was a fall. what i didn't realize, i thought the groundhog died a couple of days later. apparently a zoo trainer dropped it a week later and after both of those he died from internal. >> did they find a replacement? >> they did. >> is he hiding? >> de blasio is going today. but no one is allowed to pick him up. he won't pick him up. because that was a violation of

policy. >> apparently it's a violation of zoo policy. you're in the allowed if you're not a trained animal handler you're not allowed to be picking up. >> aren't they going to allow ferrets in new york city as well? >> it's illegal. >> it's a new thing this year. i thought it might be a de blasio thing. >> a ferret to me reminds me of -- >> it's a weasel. >> nice ferret, man. >> jeff is going oh! >> bridges made some appearances last night. >> it was weird. >> he was there. >> we should tell you about other auto news. ford cfo said the company sees ongoing problems in russia. the ruble's decline and the struggling economy is said to be laying on ford's market share. they cited russia as a major reason for lowering the 2015 european expectations. it's been a big problem for any foreign car company because the

ruble's decline. the automaker wants to take advantage of southeast asia's biggest vehicle market. and union workers at nine refineries have been told to strike. both sides say they're still hoping to reach a deal over pay, benefits, and safety. the united steel workers union represents workers at 65 plants across the country. they're going through the negotiation when oil prices have fallen by more than 50%. i think you have to go all the way back to 1980 since you saw the steel workers strike. investigating moonies. whether they issued favorable grades ahead of the financial crisis. the doj set to be nearing a settlement with standard and pores over similar actions. the dow, s&p, nasdaq coming off two straight negative months. eight of the last main sectors

finished january in the red. the worst financials down almost 7%. the best performing were utilities up more than 2%. let's take a look at markets. futures are looking a little bit better today. you're going to see green arrows here as we look at the very frirs trading day of the week. it looks like the dows are up. the dow, the s&p, and the nasdaq had two consecutive months of losses. the dow and the svp had the worst losses since 2012. when you look at the two months of losses back to back together. let's take a look what has been happening in europe. at least at this point it looks like green arrows. the dax looks like the best performer. greece things are looking better, too. the stock market up by about 5% this morning. in asia overnight you'll see that there were some red arrow ace cross the board. shanghai down by 2 1/2%. and oil prices last week had a

huge rebound. you saw increases of about 8%. guess what? it only has $48 a barrel. this morning another gain. it's hard to believe after a massive rally we're sitting at $50 a barrel. if you want to take a look what is happening with the bond market. 10-year note is yielding. and currency markets right now it looks like the dollar is -- yeah. the dollar is up against the yen and the pound. down against the dollar. it's looking out seven consecutive months of gain it is turned in last week. strongest month in january since may of 2012 when the index gained. coal prices barely down this moorng. >> president obama releasing his 2016 federal budget proposal today. it includes a call to end sequester cuts. and a 7% hike in sprending.

translates to s tos to s tos to $74 billion. i'm glad that you're here. i can talk to you about the second half. >> i have a timer. >> i know. >> i had to put a 3-year-old to bed. >> i am a toddler. >> you had the daytime emmies last night, right? you stay up for the final s.a.g. award where foreign animated set direction. you will stay up for the award until 12:30 but you didn't -- >> still doing the makeup. >> it was the finale of housewives beverly hill housewives? >> housewives of new jersey. >> what i'm sure what was it you see -- >> bravo. >> you went to bed after katy

perry eye of the tieg ensure. >> it was not so great. >> i was dealing with kids during that period. >> it was not a good situation. >> did you see the third quarter? >> just the beginning. i mised the main -- >> like twitter idol. chris matthews is giving me a tingle on my leg. >> oh. [ laughter ] >> that's fantastic. >> he knows how to tweet. >> he does. >> he's very adept. >> giving me a tingle on my leg. >> would you have thrown the ball? >> you know, obviously if it worked, yes. it's brilliant. my question to you was bill check is a genius and a great coach. as you were watching him at 55 seconds -- >> deer in the headlights. >> yeah. he didn't know whether to call

timeout or not. >> it's a good thing he didn't. >> they probably would have ended. was he, like just frozen? >> what was going through his mind. do we let them score? we need to get brady the ball back. >> he wanted it to happen fast. >> he didn't call time. and they were going to run down to 20 seconds. he was saying look they have a half yard to go. >> and they stepped up the play by 21. unbelievable. >> about guy early on said one of the players. one of the guys the analysts said belichick would have to lose a third straight super bowl i don't think it's going to happen. >> i gave myself a lot of credit. he retweeted my tweet. i said you can't bet against belichick a third time. i missed it by one point. 27- 24. seattle defense. >> why 27? you thought they were going to miss a field goal? >> i thought they would win by a field goal. >> oh.

>> how about the, i mean, brady when the guy -- it was like slow motion. the guy is on the ground and it lands. >> and then germane -- >> and brady was like -- >> yeah. >> do you play football? >> a little bit. not very well. this is -- i was looking at akins republicans comments on the president's proposal for the overseas stuff. he said it's a starting point. it almost looks reasonable to start here. >> a 14%? >> yeah. >> what it is. they proposed 8.75 for the currently held overseas $2 trillion. obama goes 14 maybe they meet in the middle. you can make argument it's a reasonable first starting point for what to put on the $2 trillion overseas. i don't think corporate tax is so complicating. there's so many moving parts this is a start of a great negotiation in 2015 that gets you to a final deal on corporate tags taxes. >> i love the idea of a

negotiation. i wonder what about the idea of a territoryial system. do you get to that? can you get there? >> you probably can, yeah. obviously a lot of corporate america would like to see that. the system we have now. i think the moves parts getting rid of the loopholes is too difficult. and presidential politics coming into it. but in terms of this being a completely unreasonable proposal from obama. it's not. it's a higher tax rate than republicans like. >> we talked about last week a tax holiday was proposed at 6.5%. do you have to do -- does there have to be a mandatory tax on everything overseas before you bring it back. is there some other way to do it we haven't thought of yet? >> we let the $2 trillion come -- >> not for flee but the question to make it voluntary. does it have to? i mean the tax holiday before? the idea somehow they view this as con fisk story.

whether you bring it back or not it doesn't matter. >> if that's what you to get to. the question becomes 14% but that's not the only number you care about. you care about the 19%. you get a credit for the 12.5 percent you've already paid. >> precisely. it's not a 19% total rate. you get credit where you paid the money. it's not enormously high. it's higher than what republicans want. that's why you see some positive reaction from republicans he's moving in the direction of junking a tax code -- >> how much does it matter he's trying to raise revenue? >> a lot to republicans. they want to do tax reform that is revenue neutral. in a way that doesn't add new revenues. it makes it important.

it can be a lot lower. they're not completely against the idea of spending a few hundred billion. so it's not off the table. i think it's hard to do in the environment in washington right now. what do you know about behind the scenes with romney and jeb bush. they had dinner. >> they had dinner. yeah. he said get out of here. this is my deal. >> what happened? >> what happened with romney? >> i talked to a lot of donors who were surprised who thought he was all in and excited. sometime -- >> that i were really excited? >> they were. >> is he leaving to devote his side to climate change. i know, he's the republican that believes in it. >> yeah.

>> i think treasury secretary for jeb bush. >> that's interesting. they'll find some role for him. >> i like that. and he is there if there is a protracted battle between it. he gave the fiery speech in iowa everybody liked. he's a top of the relatively meaning less poll. >> he did some things in wisconsin. >> yeah. he's a real candidate. the whole knock he's not exciting. he gave a good speech in iowa that everybody loved. i would keep an eye on him. >> and chris christie still got some going? >> the question is he going to have anybody else? the people to watch are woody johnson, some of the big new york money. do they go jeb? do they flirt with christie? i think eventually jeb. they'll hang out and see how it plays out. how the candidates do. obviously after romney got out, jeb and everybody else is working the phone trying to be et the big money guys to come to

them. who would you put on the vice presidential nomination not for the republicans but for hillary clinton? >> that's a tough one. you might want hispanic vote. there are others who are possibilities. but, you know, you might want somebody from the ohio midwest to lock that down. it's a tough call maybe joe biden again. why don't we do another eight years of joe biden the vp. >> can you be the vp? he's very good at being vice president. >> he is. and america's favorite. i don't know if he wants another tough eight years for the country. it has been a really -- the stuff we did, whoa! man! the stuff we did has been tough on americans. >> i love that he had no idea maybe that was a better way of saying that, wasn't there?

he's good at being the vice president. would you be pleased if he was your president? >> one heart beat away? >> always yeah. think about it like that. >> who is your vp. for the democrats? hillary clinton can wait as long as she wants. because you become a -- she's never proven here's to be a good political candidate. >> i don't see anybody who is going to challenge her. >> she has it locked down. >> in reading all the commentary on the 2.6% gthd p. for the year we ended, i think, like 26 or something. it's been 10 or 11 years since we did the 3%. it's been the weakest recovery

and the deepest recession. whatever people say it is. but i don't know. i don't know if we should have done the mission accomplished on the economy yet with what is happening with the dollar in china and everything else. >> it's a risky move. it's a risky move to propose a budget that would add $6 trillion in debt. are we ready to go back to adding to the $18 trillion debt? he's betting on the fact that people don't care about the deficit or debt anymore and they want to spend. does he move it too far to the left and hillary clinton being it up and the progressive democratic party she's not comfortable dealing with. thank you. >> can you stick around? we may talk more super bowl. >> i can stick around all day. and he's kind of stuck here. >> it's pouring down rain. >> is it possible to do $150 million? >> for viewers?

super bowl? >> i think so. it will be a big number. it's the most tweeted super bowl of all time. i think was responsible for about half of it. >> alan thank god they were the guys. i love chris collins. and michaels. >> he's not going to speak ill of him. >> not joe. how about phil. >> hello, friends. i was the same way. what in the world are you thinking about? you have a guy that took you to the half yard line easily. hand him the home, go home back to back. it doesn't make any sense. it was a tough year for football.

i'm going to go home and watch it again. the karma of nbc. don't you think we do better? >> exactly. >> we love it. i couldn't stand the budweiser dog. >> just vomit. >> i don't need it to tug our heart strings anymore. stupid horses. >> remember how i said i'll come 0 over to your house if you won't switch to downtownn abby. i had not taped. i switched out of the game as quick as i could. here i am switching. i want to know why the dog took

off. >> why did he get in the truck? stupid dog. >> you are terrible. >> what golden retriever puppy is not cute? it's so stupid. and missed him and loved him. >> it's a sad -- it's so cliche. it's so stupid. and the stupid. the kia. i'm getting tweets from people. let's talk about the weather. hitting many parts of the midwest and here. the weather channel is here. she's in pennsylvania today. good morning. >> good morning.

punxsutawney phil. this is groundhog's day. a huge party out here. we have snow from winter storm lie us in. the same snow that brought the blizzard to chicago and new york city. here about 6 inches of snow. now a heavy rain. the story is not the weather. believe it or not. phil will make the prognostication in about 25 after 7:00. that will be six more weeks of winter or an early spring. the story is about the community getting together having a little mid winter break and a party. it is a fabulous time here in punxsutawney. you were talking super bowl. there's a parlay. we have one-half done. the patriots won. the second half is related to phil's prediction. the odds are better i think, 5-2 if the patriots win. and phil sees his shadow which happened historically about 85% of the time. and i think it was 11-2 if phil

doesn't see the shadow it would mean an early spring and the patriots win. we're about 35 minutes away from finish ought the parlay. i'll tell can you, it's a fun time here. it's on a lot of folks bucket list. i met people from around the world who are here in punxsutawney to celebrate groundhog day today. back to you. >> it looks like a fun party. we've seen the movie about what takes place there, too. >> are people drinking? >> well, you know, people have been up all night. we're standing in a field. >> don't be shy. >> don't be shy. >> yes. yeah. it's a party. and no one is shy about it. aability will of everything to keep everyone warm here. it's not that cold. temperatures are about 33 to 34 degrees. so it's really not that bad weather wise. the rain has been a bit of a damper on the weather but not on the spirits at all.

erin has smiles. >> you're wearing the hat and you're totally sober. [ laughter ] >> i had a different hat for every hour. but the rain has actually kind of put a damper on that. i'll bring another one out next hour. >> jen, the weather is working in our favor. with the clouds he won't see the shadow as long as you shut off the lights. >> don't let him see the shadow. >> most of the time predicting six more weeks of winter. we'll see what he has to say. all right. we'll check in next hour. thank you very much. enjoy! we're saying goodbye to january today. it was a terrible start for the stock market. we'll kick start february tradeding next. here is a look at this day in history.

welcome back. the first trading day of the month. they want to know if the remarkets will rebound from a disappointing january. joining us is bill stone. bill, what do you think as we head into february? usually as january goes so goes the rest of the year. you think that's the case this year? >> i hope not. i think, actually buried in january was some good news honestly. we saw a decent turn in earnings last week. all though obviously it didn't show up in the market. we've got greece and other things going on. >> all the earnings i heard were pessimistic views for the year. what were you hearing? >> well, there was some of that but i think the way i look at it is a timing issue in terms of oil. obviously, the energy space is a mess. we'll see exxonmobil today, but aside from that i think it takes

some time for the positive impacts of the lower oil prices to come through. and you're seeing it in some of the companies early, you know, at delta and things like draftthat. but i guess in the sense that earnings are ahead of where we expected them at the end of the year, i view that as good news. that we're seeing some ofsha show up. >> how long do you think owl prices last at the levels. you make a fair point it takes time for it to work the way into the consumer and the mentality there's a little bit more money to spend. consumers make up two-thirds of the overall spending in the economy. that's great news too. but if that's the case we've seen a lot of negatives and haven't seen the positives yet. is it going to stick around low prices for it to get the good side, too? >> yeah. it does seem like it should. i guess i would expect oil at some point to stabilize and i guess there isn't a lot to point to oil prices spiking.

i think you are seeing the start of that consumer. so nevin the disappointing fourth quarter gdp buried under was the bright spot the consumer. if you only had the consumer last quarter you would had a growth rate gdp higher than what we showed. everything else net took away from gdp. >> what happened with corporate confidence in terms of where copy corporations would be spending by this point but aren't necessarily. i think that's where some is also timing. everybody announcing their lowering their numbers. it's going to take some time for the others yas they may benefit to perhaps add to some whether it be the transportation companies that really benefit a lot most directly from some of those things. i think it takes time for the transition and certainly that weakness shows up in the fourth

quarter. >> what sectors do you like now? >> i guess we're tilted a little bit more toward the less -- as the rest of the globe slowed down. we added to consumer staples actually on friday. that's a new one. we continue to like health care. we like the financials in the sense that we are expecting the fed to hike this year and the should help that. not to mention very domestically focussed on the whole. >> all right. thank you very much for joining us this morning. >> thank you. coming up when we return the most watched and rewatched ads last night's super bowl. we have the data. plus, first, as we head to break. a look at january's s&p winners and losers. back in a moment.

e financial noise financial noise financial noise financial noise

♪ ♪ oh. i think her outfit the are fun. i think she looks cute. >> i liked her dress at the end. >> that is cute. that is totally katy perry. >> i like the one at the end when she got on the star that took her out.

the long gown. >> she rode out on the tiger at the beginning. i think -- >> yes. she was. you don't think she was lip syncing there. >> i felt like they were playing her in the back so she was singing to herself. >> after the halftime. you stayed up for the halftime. >> maybe a little bit of the third. >> okay. all right. but you got see the -- >> and actually -- no. okay. here is the other big story of the morning. another major winter storm. bill karins joins us now with the latest. hey, bill. >> good morning, guys! the storm igts a lot of impact hit and happened in areas from new york city to central new york. chicago, by the way, yesterday was paralyzed. they had 18 inches of snow. their sixth biggest they've ever

had. now we're watching about 69 million people in the winter storm warnings. the worst of it as far as the snow goes from syracuse across the capital district manchester to portland. those areas pick up 12 to 18 inches. south it gets messy and sloppy. a good coating of snow for hartford and providence. after about 5:00 the temperatures come crashing down. all of that sloppy slush, everything that is out there will freeze. a word of advise to everyone north of new york will get messy. even new york city shovel today. if you don't tomorrow you'll be out there with the ice chipper get. that's the storm we're dealing with. it's a high impact. a lot of schools are cancelled across southern new england. there's a possibility of another one come friday unfortunately, for the area too. we're stuck in the cold miserable pattern. after the mishap with last

night's blizzard, i'm on aroll. patriots 27-21. this storm is going as forecasted. maybe i needed the mishap last week. >> sad to say, but weather forecasting and trying to call a super bowl score about the same in terms of -- that's the sad thing. what you said i said that sounds familiar. i read that from our nbc feed last night. it just what you said. and i remember you wrote it. you told us last night and you are chief meteorologist. because i, wow, that sounds familiar. wow, it was his e-mail i was reading. >> all right. >> thank you. >> wow. see you soon. we're going to talk commercials now. more than 110 million people are expected to watch the super bowl. maybe even more than that. that's more than a third of the country. for a 30-second ad companies like nationwide insurance and

bud wise forked over $4.5 million. which were the most memorable. here to tell us this morning and walk us is senior vice president manager. you can tell because you've been seeing who is fast forwarding and rewinding. i have a tivo have i give you permission? >> you have. >> i didn't know it. okay. >> i thought cnbc sara was here. when did you leave? >> a long time ago. i said hey, tara! thank you for coming in. you are with tivo. >> i left in about 2000. >> okay. let's talk about most rewatched moments period and talk about the commercials. >> sure. the most rewatched moments were the catch at the end. >> right. >> which certainly was definitely age moment for all of

us. we predicted it was going to be one of the top three. >> was there any commercial that came even close to that? did people rewind the commercials? >> well, we have great viewership retention on the commercials. of course, we're the super bowl. the number one was budweiser "lost puppy." >> is that because it was so lame? >> they rewatching it over and over again or note the most watched because they didn't pause and try to fast forward through? >> it's a combination of rewatching and live viewership. we can tell viewers are tuned in. >> here is my problem. i had several commercials i wanted rewind including lindsay lohan. because i wasn't sure. i don't rewind anything because i don't want to miss commercials or any of the game. i don't want to be behind because i might find out what happened on twitter beforehand. i wouldn't touch the rewind button. >> the great thing about a tivo if you are rewinding any

programming you immediately go back to where you in the show. >> then you're still behind. >> you are behind. >> or you miss something. >> i don't know what the trucker did to the poor puppy where the puppy wanted to get away from him so badly. >> it was an accident he wandered in. >> we now talked about this about five times on the air. >> who abuses puppies? >> this was a great commercial because we're showing it for the fifth time in the last 40 minutes. >> it shows your super bowl commercials get more play than the super bowl. >> what was the biggest bust? ? >> we don't talk about the biggest bust. if you were nationwide certainly got a ton of backlash for the ad. >> and they were serious. >> a lot of people watched it and didn't come in the top ten of most watched and rewatched. there was a theme this year of the sentimental and heart-tugging commercials. you had a lot of dad themes and -- >> that was stupid. >> pretty good mcdonalds. >> was nationwide the one with

the child? >> yeah. >> the kid that was smashed and bubbles coming up from the bathtub. it was very weird. it was jarring. i was like what did i see? >> i walked in the kitchen. i missed that. >> there was a lot of tweeting about it being debby downer. i think, you know, you have a platform of 110 plus million people and that's the best way to reach people. >> do you do any tracking between what is going on tv and the second screen phenomenal. >> we do that at tivo. we have a cross media cross platform strategy. >> is there one that got more attention just broadly speaking in terms of retweets and conversations? >> actually we'll have more that have correlation later. we don't have this early this morning. a lot of tweeting and the most watched ads haven't necessarily come together. >> i love the avacado ad. >> it made the top ten.

>> it was our cmo's favorite. >> i liked it. >> liam neeson -- i was thinking of pierce brosnan. >> i believe -- >> there was a very -- >> liam neeson was good. >> there was a lame one from a few years back do you remember the screw fell off the gm assembly line or something and, like the machine was going to jump and kill itself. the one with the viagra. >> '. the fiat. >> that was not a viagra pill that. tried to make it look like one. >> they did. >> i thought might have been a nexum. you've seen real viagra -- >> maybe not. >> no. >> that's all you need man. animal. beast mode. that was pretty silly, wasn't it? the car gets -- >> it made the top 10. >> did it really? >> yeah. >> they went through a lot of trouble to make it.

>> the sentimental commercials you had six of the top ten the theme is the humor which is usually the most popular. >> that's kind of weird. but i don't know. >> explaining that at home. >> what the production cost of the commercial has to be huge. >> it's not a viagra. it's not the cost of the actual 30-seconds. it's the cost of the production of the commercial. >> yeah. i think the majority of the cost is probably $4.5 million. but there's the production as well, of course. >> all right. especially you're pay celebrities. >> thank you for having me. >> see you at headquarters. >> coming up i don't believe that. you're right about that. the smell of the friendly skies. how airlines are turning to fragrances to hook customers.

♪ ♪ [ radio chatter ] ♪ ♪ [ male announcer ] andrew. rita. sandy. ♪ ♪ meet chris jackie joe. minor damage or major disaster, when you need us most, we're there. state farm. we're a force of nature, too. ♪ ♪

welcome back. we've been watching the u.s. equities futures. so far so good. they're glad to be rid of january and into february. we have green arrows with the down futures ss indicated about 74 up. when we come back the smell that airlines hope will keep you coming back for more. i know, you have to think about that a little bit, right? later president obama unveiling his budget plan today. we'll talk to his right-hand man on the economy. that is 8:30 a.m. eastern. financial noise financial noise financial noise

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opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

welcome back, everybody. we are in the chairs looking at some of the stories that caught our attention this morning. the one that grabbed me from the minute i walked in this morning was the front page of "the wall street journal" this morning about how airlines are trying to experiment with new scents. things to make passengers feel a little better. delta has one its calling calm which i think is a lavender and the chamomile mix. these are ways the airlines are trying to upgrade things. being crammed into things when you're smushed into spaces. when travel has gotten tougher

and tougher. >> does it help when flights are delayed and kids are screaming for them to spray something in the air? >> i don't really like the idea of having extra scents coming in, then i thought about what the airline bathrooms smell like anyway and that blue water nasty smell. when you're on a plane for a long time stays with you in your hair and clothes when you walk out of it. then i decided i i was in favor of it. >> mostly when we went to switzerland and you take your shoes off and i almost -- >> walked in without your shoes on? >> almost. but then i didn't and i put them on. i'm like half asleep. i looked down and was thinking if i had -- >> what would be on your socks on that moment. >> i take the little socks they sometimes give you if you're sitting in the right place. i put them on over my socks. >> you go barefoot with your socks? you go in without shoes on?

>> i put on their gross socks. then i throw them away. >> that is not enough! it goes through and permeates to your skin and you're standing in urine. >> no. >> yes, you are. >> on a long flight if you're sleeping to put your shoes back on in the middle of the flight -- >> i'm going to buy you slip. on shoes for the next time we're on. >> it was funny. he doesn't want anyone to sit next to him. and he's looking up the one thing i thought was kind of inappropriate was he was looking up things on i think ibs. >> the irritable bowel syndrome. >> so the people walking by were seeing it and he was like i have this. then the cute lady comes along and he wants her to sit there. she's got a baby. but it wasn't first class. someone says this is and rue. i said andrew would not be in

coach. >> you can have babies in. >> totally. >> i do love this though. it was perfect. that was a good commercial. >> it wasn't bad. >> i have a serious article. do we even want to go there? it's about teachers. "the wall street journal" has an article about teacher evaluation draws new support. teach for america coming out in favor of testing teachers and teacher prep for their first year on the job which is kind of an amazing thing because most unions have been against any form of testing. this is one of the first steps where you have some groups 80,000 teachers were saying yes. >> yes. >> i think it's a great thing. >> "the post" always highlights the teachers you can't fire. six straight years, she got the lowest possible rate. never shows up. absent. late. all of her students fail. can't fire her though.

makes $84,000 a year for nine months. god bless her, but unable to discipline her in any way at this point. >> why? >> because of tenure. >> but if you're late a number of times, if you're -- >> no. it's very difficult. they put you in a padded room. >> that's the issue i would think good teachers would get fed up of having other people around them who are slackers like that. >> and you know who can fix it? >> who's that? >> jeb. jeb is a big education guy. >> he is. okay. coming up this morning, we've got top stories as well as a "squawk box" news maker. ken feinberg on the general motors recall case. when "squawk box" returns in just a moment. lac! and a gentle wavelike motion... ahhh-ahhhhhh. liberate your spine... ahhh-ahhhhhh...aflac! and reach, toes blossoming... not that great at yoga.

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new numbers coming out now made in the faultry ignition switches. ken feinberg joins us on cnbc. super bowl xlix is in the books. >> pass is intercepted at the goal line by malcolm butler! unreal! >> the close win for the patriots was also a much-needed publicity win for the nfl. more of last night's winners and losers on and off the field coming up this hour. and if you're just waking up in the northeast on this ground hog day, be prepared for weather delays. the latest on the winter storm and ground hog watch 2015 as the second hour of "squawk box" begins right now.

live from the most powerful city in the world, new york, this is "squawk box." >> welcome back to "squawk box" right here on cnbc first in business worldwide. i'm andrew ross sorkin along with joe kernen and becky quick. last night's super bowl was the most talked about on facebook. the game generated 265 million posts, comments and likes. more than 65 million people. that's up from 50 million people last year. the game generated big buzz on twitter as well with more than 28 million tweets globally. we'll have more details from last night's game later this hour. among the other stories we're watching this hour the white house has officially unveiled its 2016 budget proposal. and it targets trillions of dollars in overseas profits for a one-time tax. that proposal is expected to encounter major republican resistance though many people say this is a conversation

they're glad is taking place. u.s. regulators say 2.1 million older fiat chrysler and honda vehicles will be recalled because of air bag problems. these are unrelated to the earlier recalls with the takata corporation air bags. and today is expected to be the busiest day ever at the airport in sky harbor phoenix. key deadline reached in the general motors ignition recall saga and our own phil lebeau joins us now with a special guest. we're getting snow. you handed it off to us, i think, phil. >> thank you joe. we are joined by ken feinberg who is the administerer of the victim compensation fund. the deadline was saturday night at midnight. let's go over the final numbers because you did have a rush of people at the end who said i think i have a claim against general motors. what are the final numbers? >> well so far we're still counting them.

they come in all of these programs as you know. you get a rush at the end. so we're not -- the numbers aren't yet final, final. we'll know in about ten days. but we received 4180 claims. now, of the 4180 claims that we've received we've already noted that about 3,000 of them are either ineligible deficient, they send in a photo or a police report that doesn't say very much. or nothing. about 1500 claims have no documentation at all. on the other hand we have authorized payment for 51 deaths and about another 70 or so physical injuries. >> when you look at how much this is going to wind up costing general motors, they allocated between $400 million and $600 million. i know you're not saying exactly how much each of these claims are getting, but is it going to be in that range of $400 million to $600 million? >> again, we've got to still

look at this inventory over the next three to four months to make final decisions. i suggest those questions should be directed at general motors. they're the one who is are cutting the checks making the payments. no eligible claimant has yet rejected the money that we've offered under this program. >> you've got 13 families originally cited. general motors has known about from the get go that these families were in vehicles that were faulty defective, yet they fought it all along. have you issued a claim to those 13 original families and have they accepted? >> again, we've got to be careful about confidentiality, but i would say that those 13 having processed under this program, yes. >> and you've done this for a number of different situations. 9/11 bp. when you look at this and compare this with those situations, what's been the biggest difference? in terms of talking with the victims because i know you do talk with the victims and their families.

what's the difference here versus those situations? >> one huge difference. the time that has expired since the accident. we've received claims from accidents that occurred ten years or more in bp in 9/11 we were processing claims relatively speaking immediately after the tragedy. here we're going back to the early 2000s. and it's very difficult and complex to reconstruct accidents with circumstantial evidence after so much time has expired. but gm found 13. we found 51 so far deaths. but under a very different standard. gm was looking at the direct evidence of the engineering defect. we're looking at what the lawyers would look at and the judges proximate cause, circumstantial evidence. so naturally there would be more claims. >> when this fund was set up, you held a process conference.

i was there. you said some people at the end of the day they want vengeance. they want gm to scream no i can't take anymore. did you ever have any people who filed information with you and you said this is basically the claim that we would award if you accepted it and they said no. it's not just about the money. i want to take them to court. did you have any family who is said we will turn down the offer and take them to court instead? >> no. we've had some very irate families and that goes with the territory, the emotion surrounding these accidents and the lost loved ones. young kids driving their first automobile. so the emotion is very very high but we haven't yet had one eligible claimant who when we made a -- what i think is a rather generous offer, turn down the money. don't forget. under this program we are not looking at contributory negligence at all. speeding alcohol, texting, all

irrelevant. all we're looking at unlike a court, all we're looking at was their proximate cause that the switch caused the accident. >> when you wrap this all up what are you looking at? two or three months down the road? saying that's it. we've received all the applications. we've done as must applications as possible. >> yes. it's too late to file a claim. the filing period is over. it will not be extended. we've got this backlogged now and everybody has to be treated fairly in the same manner that we treated people over the last six months. so this will go well into the spring, maybe even longer before we clear out all of the inventory. >> you made a good point. you had this rush here at the end. is there a fair amount of quote, unquote, ambulance chasing where you get people who are saying i want compensation for a family pet, et cetera.

>> we had one like that. but no i don't think there's ambulance chasing. i think people in good faith say to themselves if there's a program like this generous payments quickly. 60, 90 120 days versus years in the courtroom. no contributory negligence no bankruptcy bar of gm. i think people say, well we may or may not be able to recover compensation, but why not file a claim. the program seems to be independent and fair so we'll process those claims. >> did you talk to mary barra this weekend? >> i haven't spoken to mary barra in months. gm made it very clear that this is an independent program, they're not second guessing. gm has not under our agreement has not questioned or rejected or appealed. they have no right under the protocol protocol.

gm has willingly gone along. this is what gm said they will do and they are. >> when you talk with these victims, clearly this is an emotional situation. you mentioned that emotions are running high. in general, summarize what you heard back from these families in terms of how they feel about general motors. >> you don't hear much about -- you hear some criticism of general motors for not disclosing these problems earlier, what have you. most of the families -- and i've seen this in 9/11 and you know from bp most of the families most of the physically injured victims lament their plight. it's not so much gm they focus on. there's some of that. but most of them are emotionally distraught over life's unfairness. >> losing a loved one or a loved one being catastrophically injured. >> exactly. mr. feinberg why me? why did i lose my daughter? 17 years old, 19 years old. she had the world ahead of her. there is no god, mr. feinberg.

there is no fairness in this world. it's not so much why it happened but that it happened and now they're bereft and upset. >> ken feinberg joining us on cnbc going over the final application numbers. that 4180 in terms of applications, they're still processing these for the next couple of months and maybe a couple of months down the road we could see the final death claim number which is at 51 go a little bit higher. >> i think so. >> guys back to you. >> phil i do have one question. i should know the answer to this and i don't. if someone hasn't met that deadline, ken just made it clear that deadline's not extended. do they then have the option of taking this to the courts? >> absolutely. in fact, even if you filed a claim, we haven't had any yet where people rejected the amount that we've offered, but if a claimant files a claim or missed the deadline they always have the voluntary option of filing a lawsuit against general motors. >> but we should point out, becky, you then are running the

legal question that's been out there all along which is general motors was given a bankruptcy shield once it filed for bankruptcy. if you had an accident that occurred before they went into bankruptcy and came into bankruptcy, then it's a question whether or not the court will honor it. >> that might be a public relations nightmare if gm took that shield and applied it. >> the argument would be we made a good faith effort with this fund here. you had a chance here. you made a conscious decision to fight us legally we're going to fight back. i think that is one that i think general motors would be comfortable taking on. >> ken, do you have any idea how many cases might still be out there? people who opted not to take it or is there no way of measuring that? >> there's no way of measuring it but i must say after six months with the publicity and the news around the country about this program, i must say i'm dubious that anybody out there doesn't know about this program and would have filed a

claim. i think if we won't pay a claim, i'm hard pressed to think that the courts will honor such a claim. >> all right. our thanks to ken feinberg. we appreciate you being with us. and of course phil lebeau for bringing us that great interview. in the meantime we've got to talk about the weather because the northeast is getting pummelled. adam has more. adam? >> good morning. round two for the tri-state region. we're going to see more this afternoon. it is about this winter storm linus leaving. let me show you outside our vehicle right now. this area of white plains we're about 25 miles outside of new york seeing about six inches. we might see up to two feet up in the boston region. now, new york city is up and running. schools are open. some schools outside of the city are closed. businesses are open. subways are running. but the real problem will be this afternoon when we see this

snow turn into rain slush, and worst after all more ice. so we're keeping an eye on this. the roads are treacherous. we saw a lot of sliding on the roads today. and there were some accidents on some of the new jersey roads. if you're out on the streets today this morning as the sun comes up you want to be very careful and just take it easy as you head into work. we're seeing a lot of people out here shoveling. getting out of their walks and the streets. it's going to take a couple hours before we get back to normal. >> adam, thank you for that. in the meantime when we return winners and losers from the super bowl. on and off the field. and then we're going to talk about swings in the market. we'll break down friday's spike. and then restaurateur mario batali on the health of the

restaurant business and his web series with popular musicians. we're back in a moment. coke versus pepsi. since five coca-cola shares have gained on average about 1% in the week following their super bowl ad campaign. pepsi has been scoring on average of a half percent during the same period. both companies out-perform dr pepper snapple group which hasn't advertised during gametime since 2010.

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xfinity customers add xfinity home for $29.95 a month for 12 months. plus for a limited time, get a free security camera call 1800 xfinity or visit comcast.com/xfinityhome. yeah there's nothing wrong with your television set. i did a double take with that one last night. that was the chevy colorado commercial that made millions of people pause and wonder for a brief second if their tvs were actually broken. yes, our whole house went -- >> right. it's not like it can't happen. remember san francisco? the lights went out. you know i thought of one other ad that was pretty good. i don't know whether people noticed. but it was the one where the

guy's calling up saying i hate surprises. it's the guy that looks like him calling him from insurance. i said wow they couldn't spend any money and redo this commercial? because the door opens and there's a surprise party. and he screams. instead there was this weird goat in his apartment. >> and no people. i was waiting for people to jump out. >> no he screamed again because this time there was a goat. i thought it was funny. everybody had the same thought that we're going to see this -- >> did you like the bryant gumbel, katie couric? >> i did. that's for the new car, bmw. >> i-3. that electric car. >> it was funny. it must have been 30 years ago. >> no. it was 1994. >> but they were mocking it out on air, what is this thing. >> except that watching it i still had the same questions they had back then. like what is this thing and what is a com?

so i haven't moved forward from that state of mind. >> there were two feel good ones i liked. coca-cola with the make it happy and the mcdonald's one where you pay it with love. because they a teased you in the beginning you didn't know what the payment was. then it was you got to call your mom and tell you you love her. >> i did see someone tweet the nationwide downer would be you have to call your mom, my mom's dead last week thanks. which would have been -- >> that would not have been so great. but part of what say say is your payment is a family hug. everybody has to get it together. i thought it was cute. made me smile. >> had to be in the works when thompson was still there. >> he also was the chief marketing officer that took over. >> he's a brand goouy. >> where was that made originally for the u.s. originally? because he was in europe. >> i don't know.

good ad. it worked. >> okay. are we still talking or not still talking? you know i told my kids and my wife, it's like super sunday is now -- it's almost a holiday. it's almost like that's all that goes on that sunday. >> it's the second day in terms of calorie ingestion. >> i think it should be a holiday the monday after. >> that was the other one. people tweeting out during weight watchers showing all the stuff you shouldn't be eating. wrong demo here dude. we're watching the super bowl eating all this stuff. i can't remember what someone said. that it was like showing -- i can't remember what it was. it was the wrong demo. but you do reach everyone. coming up we're minutes away from the official ground hog day event in punxsutawney pennsylvania. a live look at phil next. and still ahead, restaurateur mario batali is bringing

musicians to his kitchen for a new web series. he'll join us on set at 7:40 a.m. eastern. financial noise financial noise financial noise

i'm mad! >> we're watching the ground hog

day celebrations in punxsutawney. nobody celebrating here on set. >> boo, boo! >> becky said the only way he saw his shadow was because of the lights from the tv cameras which would be speaking of walter white would be the uncertainty. >> they messed up the experiment. they messed it up. there are clouds there today. it's been snowy and overcast. >> he sees his shadow every time. >> the only way he sees it is because they have the lights and camera shots. >> that's not brian doyle murray. he usually does this i think. maybe he was unavailable. >> maybe he was busy. andrew? let's talk movies because "american sniper" was the weekend's top movie again. hit another record along the way. clint eastwood's iraq war drama starring bradley cooper had the highest super bowl weekend box office take of all time.

"american sniper" earning just under $32 million for a total now of nearly $250 million in four weeks of wide release. rounding out the top three "paddington". and then "project almanac." big question out there. could a sports superstar who brings home millions of dollars actually be underpaid? the answer is yes according to one economist at vanderbilt. he points to kevin b durant for an example of this. to estimate a player's worth by how many wins he produces for his team. that data is then measured against the team's total revenue. bases on the economist's calculations, durant produced at least $30 million of the thunder's revenue. but he only earned $18 million last year. he points to salary caps for the reason for that discrepancy. not that somebody is going to cry me a river for $18 million. and i believe he makes a whole lot more in the endorsements along the way.

but it's interesting to look at. you can look at other sports players and think they were probably way underpaid. somebody like joe montana. one of only three people who now have won four super bowls. never paid the most in the league. >> okay. it's because it's all relative. there's a lot of guys that were the greatest in their time and if you hear their salaries you're -- you know things have changed. >> generation. >> people have bought houses in new york city for $700,000 that are worth $40 million. i don't understand. as time goes by, all these -- i'm thinking of one guy in particular, a friend of mine. greatest catcher of all time. i forgot his top salary but did sh. >> that's before tv rights came in. but even montana at the time wasn't paid at the top. >> yeah. he was something. he just kind of snuck up on everyone. because he was never -- what was he like 6' or 5'11" or something. >> did he buy real estate

though? >> i don't know. which guy? montana or -- when we come back this morning, the northeast is trying to dig out from an overnight snowstorm this morning. it is not over yet and believe me the roads have been really rough this morning. so be careful. make sure you check for delays before you head to the airport or the train station. we'll bring you an update on all of this next. plus what's next for oil prices and the impact on the markets? we'll talk about all that after a quick break. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

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xfinity customers add xfinity home for $29.95 a month for 12 months. plus for a limited time, get a free security camera call 1800 xfinity or visit comcast.com/xfinityhome. welcome back to "squawk box" this morning. among the stories that are front and center at this hour "the new york times" reporting that the u.s. is considering supplying arms to ukraine forces. president obama has not yet made a decision on providing such assistance though. also weak manufacturing data out of china disappointing investors overnight. stocks in asia falling on that news. then the ft reports that google microsoft, and amazon will play ad block to stop blocking the ads on their sites. deals are said to be confidential. that's a software thing you put on your computer to block the

ads. then these guys are going to pay the kpacompany so their ads don't get blocked. >> so they knock off the competition because they buy them out. >> they knock you out. >> this reminds me of the tivo skipping through the commercials discussion from way back when. another major storm hitting the northeast today after dumping more than a foot of snow in the midwest. nbc news' miguel almaguer joins us from boston. good morning. >> hey, guys. good morning. steady snow here in boston for the last few hours in addition to the steady brutal winds here. as you know this area was hit by a storm just last week. there's two feet of snow here. you can probably hear the plows running around me in the background. they're trying to clear this area as quick as they can. because they expect another foot of snow here over the next 24 hours. and there's also going to be gusting winds upwards of 30 miles an hour.

public schools have shut down for the day. this storm hit the midwest first. chicago schools have also shut down. in chicago there was a record more than 18 inches of snow in just over 24 hours. that storm also cut off power to some 18,000 people. 1300 flights were canceled. and this storm is just barely now into the northeast. we can expect these conditions to intensify over the next 24 hours. that will be all followed by tomorrow bitterly cold temperatures out here. certainly a second round from a brutal storm that is slapping this area once again, guys. >> miguel you've been busy. seen him all over the place. >> on a mound of snow last week over 20 feet high. >> he's all over the place. all right, miguel almaguer. we're getting it here. we will see. and maybe this is why oil's back to 50 now. maybe not. joining us now is matt smith and

on the markets jim iuorio. matt down at 3344 people were saying maybe a snapback is finally coming. we got back to $50 dpop we give back half of that move? do we go back and test $45 again or are we on our way? >> no we go back lower again now. what we saw is a pop on friday because of the rate count dropping by 94 rigs. but the reality relying on the rig count to see production dropoff this spring is as useful as punxsutawney phil's projection. so we'll see that continue to fall while u.s. production continues to rise into q 2. >> let me come back to you, matt. because jim, on top of that gdp number and then i saw the baltic dry index and then i think of the strong dollar and i think of

europe and i think of s&p earnings with all the oil earnings. i just wonder if there's something we're not factoring into all the good feelings we have about growth in the world. are all these things the deflation and these, you know yields in europe down in basis points. is there something, a big global slowdown coming up that's going to shock all of us? >> it sure feels that way. and the thing, you and i are seeing that. and i think the market is disappointed about the fact the fed came out last week and seemed unconcerned. it was a couple days after microsoft, procter & gamble reported poor earnings. so the. reason the stocks have traded over the last couple weeks is that earnings have been poor. the numbers have been mixed. the consumer numbers have been pretty good but the fed sits back and doesn't seem to be that concerned. all those things taken into account, i still think that something you mentioned is the

most important thing. alarmingly low yields in europe low yields here as well. there's not much to invest in over the globe. now we think maybe china is going to be adding more stimulus. it's got to end up somewhere. so there's few chairs open in the game of monetary musical chairs. i think u.s. stocks is one of them. >> i know. but fw the stock market ever starts -- it went down in january. and if it becomes clear, people might eventually just say you know what? i'm just going to be in cash and wait this out. because i don't know what's ahead to cause all of these weird -- these oneself once-in-a-lifetime occurrences. this is crazy. oil goes down 55%. >> that's where you use technical analysis to try to gauge what the psychology and momentum is going to be.

that's a pretty decent sized negative. and that might change it. >> we'll get back to matt but i like to think of it as a zero sum game that the money's got to go somewhere. but sometimes money just goes to money heaven. and if people decide i don't want to be in anything and just be in cash maybe zero interest rate doesn't mean that everybody goes into equities just because it's the last place to go. >> that is -- >> the stock market has gone down 20%, yocht to stay in it. >> that is certainly a possibility. that's why i've been moving into gold as well. because i do think if there's a significant selloff in the stocks which by the way i'm not saying that. if there is people got to buy something. and that yield in gold looks great compared to the negative five and ten year yields. >> or maybe oil, matt. maybe this is a time where you don't plow everything into it. but if you had -- if someone told you you had a chance to buy oil for under $50 six months ago, you'd say i'd buy a

long-term position. >> you would. that's right. but i think we're going to see over-supply in the market in the first six months. you do look at the market and see the prices higher. i just don't think now is the right time to be jumping in joe. >> you haven't addressed demand though. do you care about that matt? is there anything there we're missing in terms of demand being a big part of this? lack of demand? >> there's obviously tempering demand to come through because of the weakness in europe weakness in japan as well. we the that manufacturing number out of china showing that their manufacturing index is contracted for a second consecutive month. but the reality is low oil prices are going to spur on demand. but that is going to be on a lack basis.

that's going to come through probably in the second half of this year. this is why everyone is still tentative about prices at the moment but looking for them to rise later on. >> iuorio was it last year -- i think there was a year that everybody was predicting 3% at the beginning of the year. and we haven't done it for six straight -- eight, nine ten straight years we have not done 3% for the full year. once again it's like it's in the bag this year. is it in the bag this year? >> no. i was one of those guys saying it was. you're talking about yields i assume. >> no, no no. gdp. i'm talking about gdp. ten years since we had a 3% print. we get it in various quarters but never a full year. do you think we will this year? >> i do think that. there is a clear case to be made -- a negative case for oil plunging like this but on ambulance i think the positive case is a little stronger.

i think it will win out. i think the consumer numbers have been strong and the earnings numbers are going to be good. i think we will see 3% gdp for the whole year. >> all right, gentlemen. thank you. ipts i wanted to ask you quickly did you see "jurassic world"? >> yes. i can't wait. >> chris pratt is like a movie star from whatever that pfs. >> i can't wait to see this one. it looks so good. and it's all three of our kids that are totally into it too. >> they made another park after what happened the first three times? >> that's the biggest thing you have to suspend your disbelief on that? >> let's do it again only putting more raptors in here and put more people -- >> they messed with nature again. they created their own dinosaurs again. >> so they learned absolutely nothing from what happened the first three times? >> no. >> we never learn. that's the point. >> that's the biggest thing you have to suspend your disbelief

on that? >> no. it's a universal -- but it does look good. as the cgi gets better and better. you see where they're holding that whatever it is up and the thing comes up. >> the thing that comes down in the bubble. and the claw comes through. that's the only thing that kyle actually stopped playing to watch last night. >> we will check it occupy. coming up when we return mario batalilaunching a new web series with musicians in his kitchen. the benefits of staying private versus taking a restaurant chain public. we'll talk to him when we come back. an lower returns and fewer choices in retirement. know that proper allocation could help increase returns so you can enjoy that second home sooner. know the right financial planning can help you save for college and retirement.

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welcome back to "squawk box," everyone. we've been watching the futures this morning. and at least for this very first day of february we look like we are getting a better start to this month than we saw for all of january. right now the dow futures are indicated higher. they're up 48 points above fair value. s&p futures up by nine points. we should point out the futures

are down from where they were just an hour and a half ago. we have a special guest at the table this morning. he owns or co-owns celebrity restaurants. mario batali is adding content creator. feedback kitchen features his one-on-one interviews with musicians, lots of different ones. thank you for being here. >> thanks for having me. >> apologies about seattle. >> yep. >> what do you serve on the super bowl? what is mario making at home? >> every year i do a back and forth between the natural cuisines of each of the competitive team cities. so last night it was chicken teriyaki. then it was seattle crab cakes. then it was scallop rolls. for half-time we always do dirty water dogs. then third quarter was new

england chowder. and the victory dance was supposed to be the chili from eastern washington called chili colorado. and it was delicious but did not take us to victory. >> chicken teriyaki where is that? >> seattle is big into teriyaki. >> you look like you're in good shape throughout this. do you drink? >> ice cold beer and then for victory would have been shots of rum, but there was no victory so the rum stayed put away. >> well there was a victory. >> not really. >> did you see the weight watchers ads during the super bowl? we were talking about that. it was weird, wasn't it? >> i had a house full of people who all brought their kids so i was basically herding animals during my favorite time the commercial breaks. >> someone said that's like advertiseingeingeing geritol during the x-games. >> that's right. they try it on january 1 then they give up through super bowl. then now is when the real time

hits. >> tell us about feedback kitchen and how it started. >> feedback kitchen is a dream idea for me. i love music almost as much as i love food. and i love the idea of learning about the creative process. i invited five of my friends who i had met before. i have a co-producer who helped set this up. there's a guy named steven who shot the whole thing. we shot in a warehouse in brooklyn. it came out well. the idea is i sit down in a fabricated odd studio apartment. i meet an artist like edge. we sit down and talk about music and glass of wine. and then i make them lunch. >> no one is going to turn you down with that. you're making them a meal. >> i think everyone wants to be on it. it's like joining a band. no one wants to be in the band until they have a hit. then everybody wants to be in the band. i don't think that would have been the problem. free lunch is always good. >> how many digital shorts have you done? >> five. 22 minutes each.

>> how many do you want to do? >> i could see doing this once or twice a year in groups of five for a long long time. sitting down talking to patti smith about where she goes to write every day and her process of creating something, it's similar to how you think about making food or menus. there's a thousand ways to get to whatever your inspiration is down. >> since we're a business network, what are the economics of doing this? is it an advertising play for you? >> daily motion said we'll do this and get a lot of eyeballs. and we'll have a million on each one. at the end of the business play you need a sponsor who doesn't offend the artists and also who doesn't demand to be product placed in everything with the artist. because the artists aren't they way. they're doing it as a favor to me. i can't say by the way it's a fiat commercial or whatever. >> you ever had to do product

placement with food? >> i wouldn't have -- on "the chew" they do food stuff every now and then. >> while you're here i need to ask about restaurant business at large. but first shake shack is ipo. >> bravo. >> i know you want to take eatily public. but would you have invested in this this? did you? >> no. i don't have a giant portfolio outside of my stuff. i think that there's two things. i think it's an americana play. i think people on the street have a soft spot for that kind of nostalgic hamburger and shake. i think it's slightly overvalued in my opinion for 63 restaurants, but at the end of the day it is what it is. >> will they become the next mcdonald's? >> i don't think it ever wants to be the next mcdonald's. it's going to be like the next

chipotle. i think the next move will be to go organic. >> piece on "the new york times" this weekend about tipping. tipping practices. did you see this? >> it's a huge problem for us. we can't figure it out. >> now apparently it has moved to 20%, 30%, 40%. now you have some that are calculating and forcing it on? >> you can't force a tip on anybody. you can't distribute the tips to the staff in the way you thought was legal. there is a whole mess of rules out there. and it's probably the biggest difficult thing for my industry right now. >> on the check it prints it up with 20%, 25%, 30%. but the buffet it came out 20%. automatic. >> also now are sometimes putting on waiter kitchen. they have a separate line item. would you ever do that? >> we're trying to get away from the whole thing that we don't touch a thing. we just want the tips to go to

who the customer wants it to go to. >> i got one other for you. i was just on open table over the weekend. but now there's all these other services that not only getting reservations online but charging you for the reservation. what's your take? >> i think that's a little stinky. they come to us and ask us how can we get more tables and we're like, but you're going to charge more people something that's already available. >> thank you, thank you, thank you. please stand up and keep saying that. >> if you can't get a reservation, go in and be nice to someone. >> to put another middle man in there who's taking a cut out -- >> that's the middle man's cut though. they are the ones developing this plan. >> but it reminds me of ticketmaster and the service charge i have to pay for every ticket i get. and i have no way that i can go around that. >> you believe if you're just nice to the maitre d' -- >> i think it works sometimes. it depends on the maitre d'. if you walk into a restaurant

and order a nice drink and tip immediately to the bartender, that little ripple happens. and it's just because it shows that you're someone who wants to be in the game. you don't have to be extravagant. it's more about establishing that you're the kind of customer at a restaurant that wants to come back regularly. >> the program is called "feedback kitchen." it's on daily motion.com. >> yes, sir. >> thank you for coming in. >> thanks for having me. >> thank you. coming up stocks on the move this morning. the names you should be watching. and next we're going to talk the president's budget and battle for the gop presidential nomination. now that mitt romney is out of the field. steve rattner and dan senor. take a look at u.s. equity futures.

welcome back too "squawk box" this morning. another announcement for amazon. striking deals with three large

universities to operate websites collaborating with the retail giant to sell textbooks and most other items available on amazon. students spend nearly $10.3 billion on textbooks each year. amazon is looking to get a piece of the action. all right. let's take a look at a couple of stocks to watch this morning. pitney bowes matching estimates. revenue was short of expectations. the company says it's still focused on reducing costs. man, it's hard to see. jcpenney rated to sell. the shares are overpriced relative to the company's ability to grow. meantime evercore is calling macy's a buy. pointing to stability in a highly competitive industry. also check this out. the first full day of the venice carnival filled the canals with boast boths and costumed

revelers. they rode their way through the water followed by crowds of curious onlookers. a freezing winter chill didn't deter the celebration. the venice carnival always takes place during the ten days leading up to lent. it's almost ten days until lent? >> yeah. ten days leading up to lent. >> then lent is 40 days. that means fat tuesday is nick two weeks? tuesday before lent starts. >> interesting. i never knew that. >> well mardi gras right? fat tuesday is the mardi gras celebration before lent starts. >> i don't know. ever since halloween, man. halloween it starts. then there's no break until now really. sfl >> and then the 40 days of fasting until you get your easter candy. >> we'll be at pebble.

usually i drink around my -- >> drown your sorrows. when we come back this morning, we'll tell you what you need to know about the president's budget. jason furman of the economic advisers will be joining us. plus we'll get quarterly results from exxonmobil. we have instant reaction from that component when "squawk box" comes back.

after a shaky start to the year, january is now in the books. investors looking for a fresh start on the first trading day of the month. washington watch. president obama delivering a $4 trillion budget plan today. and super bowl xlix crampons. it's the patriots overtaking the seahawks in dramatic fashion to take home the franchise's fourth title. >> pass is intercepted at the goal line by malcolm butler! it's groundhog day. the final hour of "squawk box" begins right now. >> live from the most powerful city in the world, new york, this is "squawk box." >> welcome back to "squawk box,"

everyone. this is cnbc first in business worldwide. i'm becky quick along with joe kernen and andrew ross sorkin. as more snow blankets the northeast, we looked to punxsutawney phil this morning for hope there would be an end to winter nearby. we thought we had everything on our side with the weather going our way. but thanks to the media and all the people with the flash photography and camera lights set up yeah he actually saw his shadow. that indicates another six weeks of winter. thanks a lot for that media. when we come back we have more headlines this hour. let me tell you about a few of them right now. president obama is setting up a fight with congressional republicans. he is producing a $4 trillion budget. also obama's chief economy adviser jason furman will be joining us to talk about that. short bets on wti crude jumping to highs. wagering on further drops in price. the data is sparking fears of

what could happen if those positions were suddenly covered. we've been watching oil this morning. it has been pushing higher. also union workers at nine u.s. refineries and chemical plants have been told to strike. but both sides say they're still hoping to reach a conclusion. all that with oil prices down 50%. a number of -- >> you want to do it now? >> yeah. >> exxon. speaking of oil prices being down, there were times when exxon used to earn $10 billion in a quarter and people wanted full profits back. hopefully those people will help the struggling company right now as they're earning only about $6 billion. in the current quarter, don't hold your breath for that. $1.56 was above expectations. $1.34 is where estimates were. the revenue numbers pretty much in line little bit shy. $87.58. they usually do $100 billion in

a typical. i think they did $82.2 and change. exxon does have -- it's a major integrated so it's got downstream where input costs could be helped theoretically. >> he says because of the balance portfolio, he claims that exxonmobil to deliver superior results through the commodity price cycle. >> and i think the stock at furst blush is indicated up about 3% right there. 2.25% so far for exxon. we'll see whether that helps the dow. and as the dow component. trying to hit up the actual press release. >> downstream number earnings were $497 million which was down $419 million from the fourth

quarter of last year. they did talk about stonger marketing and non-u.s. refining margins being offset. >> yeah. and completed a record eight major upstream projects. solid results amid lower commodity rights. is going to pull in its horns a little. >> who came on our air and said you should buy chevron? who was that? >> dividend per share, 69 cents was increased 9.5% compared with the fourth quarter of 2013. is that they're saying boosting this quarter? because it was a 3.1% yield or let's see four times 69.

>> yeah. it already was. >> yeah. that's what i wanted to weigh what they said. then i was going to look for replacement. how much they replaced. here it is. oil equivalent production increased 4.9% since 2013. but you exclude the impact of an expiration of an abu dhabi it only increased 4%. that's something a lot of people look at whether they're replacing reserve as well. >> meantime we're going to talk about president obama's budget. releasing his $3.9 trillion proposal this morning. bank taxes sure to have congress ready to fight. here to talk about the budget cofounder of the foreign policy initiative and steve rattner.

so we all heard about the foreign tax or to bring back this money. 14% across the board no matter what. and i saw last night lots of people calling it confiscatory. is it confiscatory? >> i think it's aggressive but not outside the range of reasonableness. >> you think reasonable? >> no. i'm not using the "r" word as a stand alone, i think it's a starting point for a discussion. and i think this is one area you could see movement in congress over the next two years. paul ryan said some positive things after the state of the union address. this is not so out of the -- >> 8.75. >> correct. >> so what's a number that makes sense? >> there's not a magic number. tough put this in the broader context of the fact that corporate tax revenues have been going down down down in the terms of the effective rate the companies pay and their share of federal revenue. there's a race to the bottom

among places like canada britain, ireland, to get more corporations to come and move there. it's a worldwide problem. we have so solve it. i think i will take enormous concession this is much many the range of reasonableness. >> does it solve it? then there's the 19% that is going forward. and what that means to a territorial tax. >> well the 19% in some ways is more significant. it means for the first time we're going to tax foreign earnings whether they come back here or not. and i think that has already generated enormous reaction. >> that is where it's going to be the lightning rod. but none of this -- >> -- to be zero? >> correct. unless there's a comprehensive tax reform resolved it can't be a pinprick strike. >> that's the interesting thing. from a competitive standpoint you are competing with other countries that have slashed their own tax rates since 1986

the last time we revisited ours. >> the corporate tax rate in britain is 21% and we're at 35%. and they're a real country. this is not the barbados or something. and so we have to try to somehow bring the world together on this. until then i think the kinds of things the president is proposing are reasonable. i would disagree with you about one thing. i think the probability of anything happening -- >> look. i think it's going to be tough. ryan is definitely signaling much more than other republicans were after the state of the union that there could be a discussion here. when he says that publicly, there probably is even more in the private sector. >> ryan is a very reasonable guy. he is a deal guy. he would get something done. you know when you get into this all these companies have differences. you have the problem with the pass throughs and what happens to individual tax rates if you lower the corporate tax rates.

republicans said there has to be something on pass throughs. >> what else does the president have at this point? the world is a mess. he's not going to have a foreign policy legacy. the economy is subpar at best. some kind of big tax reform that addresses this issue could be the only thing he leaves behind. and the question is whether or not he wants to set up a populous environment in 2016 or if he's actually worried about his own legacy and wants to get something done. >> why do you think those are not mutually exclusive? >> because he'll have to move. he'll have to move in order to get a deal with ryan and the congressional republicans and he'll have to subordinate the populous economists that he will be encouraged by warren and others, so he's -- this is going to be an attention. >> i think the president does want to get something done. i think the stock -- you can sort of say it's irrelevant. but i think he's laid out basic principles and things he's going to fight for. but i don't think he's just going to give corporations a tax

break. i think he's going to want stuff for infrastructure. i think he's going to want stuff for other middle class priorities. it would be great if we got a deal out of this. >> if you were ge google or apple, how problematic is this for them? or is this what they were expecting? >> i don't know what they were expecting, but i think if you're one of those companies, you probably have what you have now. which is you're not getting taxed on foreign earnings. this is where joe is -- >> you always hear the companies complaining about the tax code. >> it works for them. as much tax they have abroad they have a lot of cash here in the united states. they don't have problem getting their hands on capital when they need capital. so yeah it's not the most efficient thing in the world but compared to what's been proposed. >> and more importantly they want predictability. if you could tell them there's a

comprehensive solution this is what it's going to look like -- >> wait a second. that's counter to what you said before. >> no, no. i agree with steve they prefer -- things are working just fine for them but if you told them there was a comprehensive plan that -- >> comprehensive. that's the -- >> yeah. that gives them long-term visibility, that's value. >> to make it much easier wouldn't worry about -- i haven't said anything but -- >> which is shocking. we were ready to -- >> no because i'm so far away from this. i would not try to stop the race to the bottom. i'd let it go to zero and let us slug it out and make it up with personal income taxes. but there's a punitive wish on people in your party that they think corporations are so bad anyway and they're bad actors. we need -- if anyone's got to pay taxes, it's got to be these guys. all the other ramifications -- >> i -- >> i'd like our guys to be more competitive than any other corporation in the rest of the

world. >> so i wrote an op-ed for "the times" saying exactly what you just said. >> what happened to you then? where'd you lose your way? >> in a perfect world you want companies to pay their fair share. >> what does that mean? coming from this side of the set when you use the word "fair" i immediately reach for this wallet. it means you get what you deserve. not you get what's fair compared to some idealistic motion. >> let's assume you get them to agree on taxing companies at some quote, fair rate. 25%, 20%. pick a number. >> why not tax the shareholders and people as it flows through? why tax -- >> i have said that's a possibility. it is a hard thing to do. it's hard to get that much revenue. you've got to eliminate -- >> no no! >> you want to pay 60% of your income? >> i'm not prepared for that. but there's a number you can

get -- corporations pay how much of the -- no it isn't. it's 9% of the total. >> but what do you do with capital gains? you have to raise capital gains? [ overlapping speakers ] >> but there are people that wish they could tax corporations at 70% because they don't understand where the job creators are. >> you're okay with taxing capital gains? >> all those things should be on the table. >> comprehensive solution. need to address these issues. but when president cruz is sworn in in 2017 it will be fine. >> i've heard rumblings that these ideas have been at least positive to jeb bush who said there's some merit to the idea of figuring out something different. we want our corporations to win around the world to get more jobs here. >> even if you got to a rate that you thought was a good rate where you could brings things down like simpson bowles did,

there are companies that pay less to fight it. >> because they've already moved facilities over there. >> what i will say by this proposal, my biggest concern with it is by not addressing the territorial type of tax system that you are then incentivizing companies to move off shores. that's what we've been trying to prevent. we don't want them moving off our shores. >> it's a legitimate point, a legitimate problem. no question. although when they move overseas for tax purposes it's not like -- >> the biggest are here. employees are here. >> but a lot manufacture and sell over there. >> there are many that do that even without did sh. >> there's a reason they over there too. >> we've got to leave it there. this is fun. >> it's unbelievable. >> you guys just ran your mouths the whole time and here we are. >> are you guys having lunch together too? >> are you shocked he rooted for the patriots? >> a little bit. >> no no no. that was a joke. >> the seahawks are the

politically conservative team. they're conservative. they cite spirituality and god and believe in rule of law. which is the patriots are the sort of whimsical rule making. >> wow. he spent more time analyzing this. >> thank you. >> and i would say steve has served well his country and is a patriot. >> thank you. >> you're welcome. >> wow. coming up -- he's well intentioned. coming up -- >> he means well. comes from a good place. >> exactly. coming up -- they all do. i mean he was motivated by good things. instant analysis of exxonmobil. check out the shares of the oil giant just out with earnings. plus much more on the president's 2016 budget. we're going into the fire. white house council of economic

advisers jason furman. then how oprah gets her news. vanity fair says it's a must have for any professional on the go. the founders of a daily news letter called the skimm will be here. we'll be right back. dominos pizza has a habit of delivering a crushing blow to its competitors after the super bowl. since 2005 the pizza giant on average has gained more than 6.5% in the month following the big game. and has traded higher in nine out of ten years.

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♪ exxon posting better than expected quarterly earnings. calling in now on the "squawk" newsline is fidel gate. he is senior energy analyst. you look at these numbers, they are better than the street had been expecting but they are well

below what we saw a year ago. how do you weigh? >> a couple of things. obviously earnings down and that was what the report was so far. but exxon because of what they said the integrated business model which is more balanced between up stream and downstream. production on the other hand definitely a little lower. prices were lower than a year ago. but the chemical business did very well. so the company came ahead of expectation. significantly lower than a year ago. now, looking at 2015 things are going to look a lot worse because oil and gas prices even at $70 oil would be significantly below the average of last year which was $93. for every $10 change in oil prices exxonmobil earnings is

impacted by about $4 billion to $5 billion a year. >> last year we did see oil prices pick up around the last week. if oil did stay around $50 a barrel this year would you want to be an owner of exxon shares? >> you don't want to own any oil stock including exxonmobil. but for those investors that must be market weighted this is slight safety. you are going to go to people dumping other energy stocks. as they work in favor of exxon. >> having said you would not want to own any oil companies if it's around $50 a barrel, where do you think it's headed this year? >> i think oil prices will probably go into the low $60 range. the question is how long will this last? obviously impacting the oil producing countries.

it is impacting the energy space. we are going to sea a lot of mergers and acquisitions if prices do not rebound above $60. >> did we just lose fadel? oh, can you hear us? >> he's back. >> yes. >> i'm sorry. it sounded like we just dropped out. but you're saying the big question is how long these oil prices last. what do you think the answer is? >> well the answer is the saudis have not yet decided what to do. they are on a course to basically restore credibility and rule in opec. there's a lot of cheating. there's over-supply. the global demand is still very weak. in order for supply and demand to balance, saudi arabia will have to cut its volume by a million barrels. which they're not willing to do so. >> so saudis are still calling the shots. they can crush here in the united states that are using shale. >> that's exactly it.

>> all right. fadel, thanks for joining us. >> thank you. coming up when we return this morning right here on "squawk box," marshawn lynch's off he field antics grabbed headlines. but it was something he did on the field that grabbed our attention. life imitating art. we're back in a moment. these days, the most important person in your business could be a software developer. so, how's the app coming? we've got to make something great. how's the app coming? we've got to do it fast. let's do this on bluemix. you can build apps with analytics, big data, even ibm watson. that could

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pass is intercepted at the goal line by malcolm butler! unreal! >> if there wasn't enough action on the field for you last night, there was also a lot of action on the sidelines. in fact, check this out. it was case of life imitating art. marshawn lynch grabbing a snack just before kickoff last night. yeah. guess what it was? this is the commercial he did where he got paid for all of this. if you take a closer look at what was happening on the sidelines, maybe we're going to show this. he ate a snack that was in a little -- it was skittles. this is the commercial. this is not the life. that was the art part. but right afterwards as the things were getting ready just as the game was starting. he reached over got skittles and popped them in his mouth. he had to get paid for that. that was set up and that was ready to go. >> yeah definitely. >> caught our attention. there it is. here it is. >> yeah.

>> eating skittles. al michaels knew it. talked about it. looks very casual. looks like he played it off, but i think he still got paid. when we come back this morning, jason furman of the council of economic advisers joins us to sift through the president's budget proposals that were released today. but first december income and spending data. looks like dow up 40 points. just over 4 point ifs they are s&p 500. stick around. "squawk box" will be right back.

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we are just seconds away from december personal income and spending. take a look at futures right now before we give you that number. we're going to flip that screen across, if we could. the dow would open up 43 points higher. meantime let's get to rick santelli who has the numbers. >> income for the month of december was up about as expected. arguably a tenth better. up .3%. but that extra tenth gets lost in the rearview mirror as november originally released up .4% now gets downgraded to

up .3%. here's where it's mess y i. the spending side was down .3%. and last time we also lost a tenth on november. up .6%. we can go through the deflator up month every month. down .2%. a little light on expectations. with this number the important part is how we looked at the consumption numbers in gdp. how we saw volatility on the weight side. so this doesn't necessarily give us any clarity. i do think that the income is probably a bit more important than the spending. so at least from that vantage point, making more spending i don't have a problem with it. i wonder if the central banks of the world would have a problem with it. it goes against the master plan. interest rates are still below 170. testing a significant 30 year bound. and this year we have the two biggies on the job side.

adp and bureau of labor statistics. right now we're looking at brighter than hoped. but it also seems the green i'm seeing is slipping away just a bit. back to you. >> okay rick. thanks. the president as you know releasing details of his fiscal 2016 budget today. vowing to end what he calls mindless austerity. and reversing the across the board sequester cuts of 2011. congressman paul ryan appearing on "meet the press" signalled a willingness to work together on taxes. >> we want to find common ground on tax reform and exhaust that possibility. if and when that possibility is exhausted, then we will put out what we think ought to be done. >> and joining us now, jason furman chairman of the council of economic advisers for the president. jason, thanks for joining us. good morning. >> good morning. >> a lot of people are calling this the opening.

you got a cash proposal at eight and change. now the president's proposal. i'm talking about on the repatriation side of these things. is this something where there's some wiggle room? would you advise the president to try to work with republicans and find some common ground here? >> you look at the president's entire budget, that reflects where he's coming from reflects his value of middle class economics. and we'd love to work together with republicans to invest in infrastructure. we need to find a way to pay for that infrastructure and that's what the president is putting out in terms of that 14% you said. it's part of a reform tax system that's going to have a minimum tax going forward. it's really an attempt to balance the need to make sure we're not eroding our tax base but also make sure our companies are competitive as they operate around the world. >> jason, the term mindless austerity and, you know with what we've seen happening over

in europe and i think that phrase could probably be translated into greek and all the other countries there would probably say the same thing and point to that as being part of the problem. in hindsight that's what we're thinking. but he meant specifically he was meaning the sequester. he's not ready to just blow out the deficit again now we've made progress partly because of sequester. >> our deficit has come down very quickly. in fy 2016 it will be 22% of gdp, down 75% from where it was. but then it starts to rise again in the next couple of years. that's what we need to deal with. that's why we're putting out $1.8 trillion of deficit reduction. it's a combination of tax reform that cuts tax benefits health reform, and immigration reform.

we do all three of those, and you can make sure we're keeping our deficit down having our debt continuing to decline as shared gdp and doing all of that while investing more in areas like infrastructure. >> jason, just overall we were in a bit of a sweet spot two or three months ago where we had the print on gdp. and we had below 6% on the unemployment rate. and, you know, interest rates were going to stay low, et cetera. and then suddenly with what happened with oil and then we got the print on fourth quarter gdp which was less i just wonder whether some of the ideas that the president had, maybe it's safe now to go back to raising taxes on the capital. go back to raising taxes on certain parts of you know of the tax-paying public. maybe that was based on the notion that we had conquered

this slow period of the recession. and we haven't. i mean we're still not at 3%. it's been ten straight years that we've been under 3%. we haven't won this game yet. and we need corporations obviously, to continue to do better than they've been doing for the past six years. i don't know if it's time to go back to the well again here and start taxing capital again. >> i'm not sure i agree with your diagnosis of the last two quarters. q3 was a little bit higher because of temporary factors. q4 a little bit lower because of temporary factors. i think is the most reliable consumption plus investment. that was about 4% in q3. regardless of your reading of the economy, the president's strategy is simple. he's cutting taxes in the way that really matters for our economy. to help families with child care, education. he also wants to reform our tax code. he's going to cut the corporate tax rate but we don't need to

cut taxes and lose revenue in the process. we can get rid of a lot of loopholes and have a more competitive and effective international tax system. >> jason, you're not talking about revenue neutral. you're talking about raising revenue in a major way. >> the business tax reform plan would be revenue neutral over the run. by taxing the overseas earnings one time. that's put into a temporary one-time investment in a six-year surface transportation. >> can you help explain that? i understand the short-term hit, but why does it become revenue neutral over time? you average out how much is taken tomorrow relative to what happens over ten years? >> here's our approach. first of all, let's understand. we have a medium and long run deficit challenge still. the president has $1.8 trillion of deficit reduction. but that's not coming from the business tax side.

the business tax if you look over the medium and long run, it would be revenue neutral. the plan has a one-time tax on overseas earnings at 14%. >> and that part's not revenue neutral, just to clarify. >> correct. it would be irresponsible to use that to pay for permanent tax cuts. because if you took a temporary tax raiser and use it to pay for a permanent rate reduction, that would worsen our deficit over time. two things we need for our competitiveness, infrastructure and reform our business tax code. >> can i ask you one question just about the 529 plans? i am thrilled that the white house has already stepped back from that and kind of taken that off the table, but it was something that got me a little fired up. i just wondered how it wound up in the state of the union to begin with? who thought that was a great idea? >> the idea there was to take six tax breaks for college, consolidate them down to two. in the process simplify make it more cost effective, and have a

much bigger tax cut for middle class families. but that provision was a distraction. it was a really small part of that overall plan. a enso as you said the president certainly set that aside to focus on what he thinks is most important which is part of a $275 billion overall agenda of tax cuts for middle class families. >> yeah. i think the 529 plans in general, there have been studies who show kids who have 529 plans are much more likely to go to school. i think it's something that's a great benefit to get middle class families all the way through to start thinking about college and saving for it. >> that's fine. and as i said it's -- you know we don't need to keep debating this. we view it as a distraction. we set it aside so we can really focus on the important things we're trying to do for college. >> did you become a patriots fan at harvard, jason? >> not much of one.

but i liked the half-time show. >> who's your team? >> you don't have to team huh? >> you know -- >> the numbers. the numbers are his team. >> the numbers are my team exactly. >> okay. all right. thanks jason. we appreciate it. we'll see you. >> thanks for having me. >> there's a tweet out that people look up on google roman numerals in february more than any other time. >> i'm sure. i had to look at it three times to realize it was 49. "i" before "x" means nine. i relearn it every year. >> right. tomorrow on "squawk box," congressman tom price. the new chairman of the budget committee will join us probably with some different reaction to the president's proposal. that's tomorrow at 7:10 a.m. when we come back it's how oprah gets her news. vanity fair calls it a must-have survival guide for any professional on the go. it's the skimm that's gotten a

lot of attention from big-name investors. plus jim cramer live from the new york stock exchange. stick around "squawk box" will be back. sound good? great. because you're not you you're a whole airline... and it's not a ticket you're upgrading it's your entire operations, from domestic to international... which means you need help from a whole team of advisors. from workforce strategies to tech solutions and a thousand other things. so you call pwc. the right people to get the extraordinary done. ♪ ♪

welcome back to "squawk box," everyone. the futures this morning look like they are at least at this point in positive territory. been watching through the morning and on this first trading day of february bulls are hoping for a much better month than they got in the month of january. dow up about 43 points.

s&p by 4.5. nasdaq up 6. exxonmobil topping estimates. this came in despite a 21% drop in profits because of low oil prices. exxon also unveiling plans to cut its share buyback program. it now plans to buy back a billion dollars in shares in the current quarter nap is down from its previous level. >> stock is now down. >> if you look at it, the year for the stock this year is $86. the high is $104.76. it's interesting when companies decide not to buy back. >> that -- we didn't see that part of the news initially. and i wondered about it because of what chevron did. then it seems like the stock may have been reacting to that. that's $2 billion less in terms of the buy back. >> right. also sony's playstation network has been experiencing outages. but they do not talk about claims from the lizard squad.

last week there had been a bunch of denials about it. c arerh is buying assets from lafarge and holcim. and the ceo of lands end is resigning. okay. let's talk about a new -- it's not even new anymore. it is a daily news letter you want to open over and over. oprah called it one of her favorite things. it's the skimm for millennials and others with a little bunch. joining us are the two cofounders. before launching the skimm they were producers at nbc. >> we were. we started off there. thank you so much for having us. >> "today" show? >> we worked in every division. >> my first job was cnbc as a production assistant. full circle. >> how did this whole news letter thing come about? >> yeah.

so the skimm is about making it easier to be smarter. we started with an e-mail headline. our target is female millennials. we transformed their morning you routines. we wanted to fit news into that in a way that would enjoy. >> why were they different than the other news letters that were out when you started this? >> we knew our friends weren't connecting to news. we didn't realize we were part of the female millennial that everyone talks about. we don't refer to ourselves that way. and every brand was talking about how do we get this audience because they influence so much money and they're leading every which way. and no news organization was going after them. so we're not the first people to look at news in explan foiratory bites. but we had a unique voice and it took off. >> you have a million people getting the e-mail now. more than.

chelsea handler is one of your investors. >> she is. >> did she just decide she wanted to invest? >> we got an e-mail from her -- >> oh, he reached out to you guys. >> yeah. saying she loved what we were doing and wanted to be involved. we went on her show and that was a really fun time. so we're happy to have her on board. >> and again, a reader? i'm trying to understand. gray croft is involved as well. >> yes. the chelsea example is a perfect example. one day we got an e-mail from her producers and we thought it was a joke. we were like do we wait a day and play it cool? we waited 20 seconds. >> very short conversation. >> and through chelsea i believe that's how irving got it. but he's been -- it's just im emblematic of how we've grown. >> i think about big companies and how they're trying to take millennials and take their views and get them into the work

place. i wonder why you didn't do this from nbc? >> we never thought about it. for us it was this was an idea that we had and we loved our jobs. we weren't unhappy. we had grown up wanting to work in news and it was our dream. and i think for us it was more about wanting to create something that we could sustain and really build. we graduated in 2008. the job scene wasn't great especially in news. and it was scary to come in and to see people being laid off. we wanted to make sure we could stay with those and also create something that our friends could connect with. and that you know they would watch or read. our friends weren't really watching what we were producing. we wanted to help it. >> it's harry stiles' birthday? >> yeah. he's a skimmer. >> are you on? >> i went in as a guest and i'm checking it out. almost all -- there's one guy bzs harry stiles for the

birthday. mike shultz. >> he's a friend of mine. he's going to be really happy you gave him a birthday shoutout. >> what show did you work on on cnbc? >> i was on "on the money." yeah. production assistant. >> okay. harry stiles. >> birthdays, you've got to submit them. >> tough submit them to you? >> then you have to make it through the process. >> you have to make the cut? >> do you get the e-mail every morning? >> the past couple weeks. >> you'll have to sign up. >> separate question. the money part of this. we mentioned some of your partners on the screen. we showed hbo, showtime, nba, abc. those are sponsors. >> yes. >> i saw abc. is nbc a sponsor yet? >> not yet. maybe when we leave here today. >> you've got to get on that. and it's just an ad in the e-mail? >> yes. because we've taken a very integrated approach to working with sponsors. the skimm has a lot of

personality and voice, we wanted to introduce sponsors in a way that doesn't touch the journalistic product itself, but was a part of the skimm personality. we've been able to integrate brands with abc like with "scandal's" premiere the nba all stars on finals. we get thank yous from our readers. >> if we want to integrate "squawk box" in this what can you do? >> tell us a budget and come up with a campaign. >> whatst a day's wrort of a campaign campaign cast? >> it depends. it's custom. >> not going to answer. >> okay nice this is great. >> thank you. >> thanks so much. >> appreciate it. >> you have to go to theskimm.com, two ms. >> why is it two ms, by the way? >> something extra. >> or theskim was taken? >> it was for branding.

>> like skim milk or something? >> i don't want to give them a shoutout? >> are up next we're going to talk to jim cramer to see what's on his radar in the first trading day of the month of february. "squawk box" will be right back. financial noise financial noise financial noise startup-ny. it's working for new york state. already 55 companies are investing over $98 million dollars and creating over 2100 jobs. from long island to all across upstate new york, more businesses are coming to new york. they are paying no property taxes

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jim cramer joins us now. we used to think about the super bowl end indicator all the time. and the nfc had to win for the market to be up? >> i'm off of that. i'm not there from that. it used to work and then it went away but not sure. >> but it is the first trading day of february. hopefully, it's the only first trading day we'll have. i don't want to end up like bill murray. but january was bad. >> just bad. and it was the dollar and people don't see any benefit from oil, but oil came down. the earnings are so bad it can knock down the s&p.

it's not a good time. >> exxon did almost look like chevron, right down to the buyback. >> buy back 33 million and then you say listen, we're not going to buy back this much third quarter. it's kind of amazing because like chevron, these guys are just saying whoa. i mean, we don't believe that oil's done going down. isn't that really what it says? it's like listen we think it can go lower. because if they bought high they should be buying here. >> and they don't think it's coming up. >> yeah. >> i always tell them that's surprising. >> it means they don't think this is a v or even necessarily a u. >> i think that the painful thing about it is that exxon has been a pretty good stock. it's still down from say the low 100s. but i would have thought they would just say, you know what, this is the time. it's coming right back. and not at all. >> would you have -- did seattle have any time-outs left? >> yes.

they did. no they had everything. they could have run a couple of things. could have run it three times. and then make it so that brady had nothing. >> right. >> they could have taken the time-out at, like, 50 seconds and then run it, right? >> yes. >> and if that didn't work then try the pass maybe. but that was pretty sneaky. that was almost as if going for work. >> it was aggressive. they had been aggressive. like trent dilfer said last night, it's been an aggressive team all year. but this was not the time to be aggressive. especially with the world's best running back. >> and they had two seconds left and they had to throw a bullet. he can't even throw a pass with an arc to get that touchdown at the end of the first half. >> and now we see everybody -- we see that sherman looks like he has to have an operation on his elbow and shoulder and they still didn't throw to his side because the other side was so bad. >> that was great. that lived up to all the hype. >> it was so exciting. >> it was amazing. anyway, thanks jim. we'll see you in a couple

minutes. when we return the budget books are just arriving. delivered a few minutes ago to congressional offices. stay tuned to cnbc for reaction all day long including chris van alhollen. "squawk box" returns in just a moment. say you're a finance guy. a farmer. a researcher. you used to depend on experience. the internet. your gut. today you can use ibm watson analytics. it can make sense of all kinds of data. uncover hidden correlations and new opportunities. and give recommendations with more confidence on who will buy.

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delighted fans during the super bowl halftime show. i thought it was pretty cool. i was scared when she was up on that one thing. >> lenny kravitz hasn't changed in 25 years. >> katy and i -- i will just let you know we're just friends. i know it might look a little different here. but there was never anything going on there. >> where was that the white house correspondents dinner? >> we're just friends, though. i want to get that out. >> i was a witness. just friends. >> she looks great. >> and that lasted about a second and a half. that entire interaction. that was about a second and a half. i was gone and she was like god, i'm glad he's gone. >> right now it's time for "squawk on the street" 678.

and congratulations to the super bowl champion new england patriots. what a game. what a franchise. what a season of football, too. good morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber at the new york stock exchange. we kick off the month of february today. a busy week of earnings from big media companies. oil hanging on to some