lambert sang a high energy version of "little red wagon." >> steve pointed out that tom petty gets royalties. which is hilarious. i start singing his song every time i start to sing it. >> thanks for being here. we appreciate it. andrew and i will be back here tomorrow. we'll see you then. right now it's time for "squawk on the street." and good monday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer david faber at the new york stock exchange. stocks a little skittish to start the week as greece's prime minister takes on a rather defiant tone over the weekend. plenty of big earnings this week including coke cisco, whole foods, a bunch more. oil continues to inch back into the 50s as opec cuts their u.s. shale production forecast for 2015, and the ten-year yield right around 1.9. the markets coming off their best week in two years. concerns about chinese growth

and a greece exit of the euro weighing on futures this morning. >> mcdonald's struggles continue. asia continues to drag on results. and twitter now lower in the pre-market. we're going to get jim's take on those earnings from last week in just a few moments. but first up futures falling as we enter a new trading week. greece's new prime minister vowing to roll back austerity measures and ruling out any extension of an international bailout. eu officials pushing greece to stick with those terms. also chinese trade data showing exports fell 3.3% last month while imports tumbled by almost 20%. meantime, the dow is coming off its best week since january of '13, a 3.8% gain. for the year, jim, dow is up one point. >> right. >> one point. >> you've got to give us something good overseas. there isn't a single area other than maybe india, where you're getting any good news at all. china -- >> the import/export numbers were not good. >> what's going on there in china?

i mean knock knock, who's there, no one. >> they're importing less and exporting less. >> let's just hope best of luck for them. europe is in disarray. i think that ukraine, if there was really a schism between the u.s. and germany -- >> merkel would not be coming today? >> that's what it seems like. but what are we suddenly like -- i know roosevelt always regretted that he wasn't more involved in 1938 in munich, but, you know, in the end, it was up to europe. so i think that we're trying to get involved there. it's not clear that we're doing anything. i think we're underestimating this port strike. this port strike is going to shave some gdp. it's that big. ten times more than the west asia trade. >> you're saying there's a lot to worry about. >> i just think we need something good. the good news is masko reports and i like it. hasbro reports.

it's like ten times better than mattel. diamond offshore cuts the dividends. that's not so great. but in the end, we keep coming back to the individual companies. motorola solutions. are they for sale or are they not for sale? but we always have to deal with the tsunami from overseas. and then when we look at the beach, turns out there's some beach shares. we sit down, the sun comes out, we make some money. >> right. once again, greece's recalibration, if you will is putting pressure on those, or at least helping those who would argue that it can't stay together. make that argument. and eventually if greece goes then portugal goes. of course greece was making that point himself. >> we're only talking about a few billion dollars here for greece. the ecb along the way said at one point it would return the profits it made on its greek bonds to greece. it hasn't done that yet. that's a couple of billion euros. we're not talking about an

enormous amount of money. for, by the way, lenders who have lent them hundreds of billions of euros. >> right. >> and so it does beg the question as to why you wouldn't throw a few more their way, given how much you've already put at risk. not to mention germany, of course, which should be something of a student of history when it comes to debt forgiveness. >> that's what i think can happen. here's my plan for what it's worth. 7 years. we extend the debt seven years. we don't cancel the debt. we extend it seven years. make it long-term debt. >> a bridge loan. >> you redo the terms. over seven years. make it like a bad balloon payment. like my mortgage. just make it some period that you can just -- don't have to have it right in your face. they are trying very hard to turn around. we've had some good numbers in the last month and a half out of europe. >> again today. >> well above estimates today.

>> the numbers in spain are not bad. >> i think they should worry about france and the radical right wing. >> would you be willing to extend the terms because you don't want to envision the euro without greece and hence without who else someone else? >> just want to get it off the front page while we're trying to fix the world. i think that -- by the way, larry summers, typically don't agree with larry, but the piece in "the financial times" saying that ought to hold off a little bit. i just find that where we are right now is a little perilous. we need all the commodity stocks are going down but oil is going up. there's just a lot of different cross currents away from our country that are not so hot, and this port thing. i can't really factor it in the

way i liked. just seems like a big deal. >> a lot of ships out there. >> how many years are they going to hold us hostage? but no one ever says anything bad about unions. what, are they afraid? >> yes. >> people are afraid of the long shoremen. >> mcdonald's reporting a 1.8% decline in global comps for january. japan down 39 on supply issues in china and japan. good choice the board had a look at those numbers when they made that announcement. >> i have to tell you, i think the u.s. ad campaign maybe the u.s. was a little better. taking a long time to turn they have to fix asia. this is a new management. and new managements take a long

time to fix. but they will fix it. they have to get the franchises have to buy in. i think they lost the franchises. because remember this isn't starbucks. they're owned by different units and the franchises rebel. if they can get them back in then the customer's coming. that's what we have to wasmtch. >> in the end, it's the franchisees who have to buy the new oven, the new espresso maker, or whatever. >> if we were to do a documentary about the power of who's got the power in various places starbucks owns this place. mcdonald's, the franchises have so much power that if you lose them, they kind of like hey, you know we're not going to throw good money. turn them around first and then the rest follows. >> you just have to gain their

confidence is what you're saying. >> i think it can be done. >> it's been done before. there's no reason it can't be done again. but to gain their confidence you have to do the things that will turn the company around in the first place. >> it's a huge task. i'm not minimizing it. it's a huge task. but i think it can be done. >> it did say this morning that they see, in their words, the capability to change the long-term trajectory of the business. >> look at the radio shack balance sheet. they're 40% off. you can buy like a million cables. >> i bet you can. >> it's incredible what they're offering. >> have to stock up. >> in nuclear war spam and

cables. howard schultz took 18 months. this is probably going to be longer. it's more far flung. they've got the food chain going against them. >> speaking of food, this week's earnings, 66 s&p companies, including coke pepsi, kraft, kellogg, whole foods. we're going to get a lot of information. >> that's like a jeopardy question. which one of those is wholesome, organic, and natural. you have to say it in the form of a question. >> yes, you do. what is whole foods? >> it was daily double. >> daily double! >> oh my. and you put zero in. it was the final jeopardy. >> i know. confident. >> yeah. i mean it really is. this is packaged food week. the whole trend is against. but there's some guys. pepsico does that high single digit. jeff simon with some interesting commentary about how nelson pelt is going after some of the

winners. he's got bill johnson on the board at pepsico. let's see what happens there. >> we talked about that a lot as a trend in activism. where the downside doesn't appear to be as great. that being said dupont has absolutely migrated, i would argue, from a battle to a pitched battle. >> yes. >> whatever that means. >> remember the geneva convention outlawed chemical warfare. >> yes they did. >> just want to let both participants know. some of the worst -- >> war crime. >> let's hope it doesn't come to that. >> given the fact that it's a chemical company. >> i understood the allusion. >> i got it. >> hoping it doesn't come to that. >> on that note, that's a nice way to start a monday. pulitzer prize-winning columnist jim stewart and iron chef winner geoffrey zakarian. they played a visit to mcdonald's. we'll get cramer's reaction what

dick costolo said on or air. dow is up not a percentage point for the year but one individual point. a lot more "squawk on the street" from post nine of the nyse when we come back. [ male announcer ] your love for trading never stops. so open an account with schwab. and when a market move affects, say a cloud computing stock you're holding, we can help you decide what to do. with tools that help you see how market activity is affecting your positions. so when the time comes to decide whether to scale in or scale out... you can make your move wherever you are. and start working on your next big idea. ♪ ♪ ♪ ♪ ♪ first impressions are important. you've got to make every second count. banking designed for the way you live

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bob peck of sun trust said there's a good chance you'd be gone by the end of the year. stock jumps 5%. your reaction to those who want

to see you gone? >> listen, if you're going to be the ceo of a public company, you better develop a thick skin. that's the world we live in. i'm focused on two things. one, making sure that the leadership team here the people who are working for me and the next level of leadership under them are working well together and pushing the company forward and improving our pace and quality of execution. and secondly, making sure that i'm taking the time to look out ahead over the next hill and around the next corner to be able to prepare the team for the opportunities ahead of us. that's what you have to focus on as a leader and you have to do that while pushing the outside noise to the side. >> dick costolo responding to his critics. a topic that's been an object of your attention. >> i love this interview. i saw someone on twitter. the interview showed me that

january -- gave you january numbers. typically, you know ceos are reluctant to give you even at all a forward look. he could have said over and over again, listen i can only go up to december. the january look was good. i think that was part of the short squeeze. it was the short squeeze. but there are a lot of things that moved in the right direction. a lot of people were asking me this weekend, do you hate dick costolo. i like stocks that go higher and i don't like stocks that go lower. the stock went up because it was a better quarter. you fleshed it out. the question about whether he's going to leave or stay. you know i think he answered it. he's sticking around. there's some people who actually -- there are people who actually read that interview and did a textual analysis and saw that what he really said is he's about to go when he's done the job. i didn't see that. that was some sort of mystical kabal reading. i love the interview. i like what he said. i think the first quarter is good.

new game, new rules. costolo may have gotten it together. >> wow. >> hey people get it together. >> i like that he says thank you for asking. yelp could use a little bit of help. but i thought -- and it was interesting, i love that you said google is going to buy you. but what i thought was somehow they have gotten more monthly users again. i think they're doing a lot to make it better. doing a lot to monetize. look maybe the stock shouldn't have been at 38. maybe it shouldn't be at 58. but it's doing better than it was. he's looking at me askance. >> askance. >> nothing more than that. >> i'm listening. very tentatively. >> it was a better quarter. i expected a quarter -- >> back way off what has been very serious criticism of this gentleman. >> i think his thick skin comment reflects the fact that he's said, you know what i got

to start delivering the people who attack. i've got to start delivering. i can do it. and i think he's doing it. >> okay. >> i think he's doeng it. i think this is the first of some very good quarters. i felt good about it. good in the conference call. >> your interview was much more incisive. >> stock's not cheap and there is still insider selling going on. on dick's behalf. jack dorsey. >> i do wish they would stop that. but, you know, what are you going to do? i just wish they would stop it because it does -- the stock's done. it erodes the confidence. these are all very rich people. i mean, they're richer -- look i've had insider selling at thestreet.com. they say cramer are you a hypocrite. well, i'm not in their league. i like to think i'm in their league but i'm in the lehigh valley pig iron league. >> is that where you are? i've been wondering. >> i'm a met fan. there is a lot here to like. and the insider selling is very

daunting, because usually, when you see that level, it means that you're wrong to like the stock. but these guys have been constant insider selling. when it was good, when it was bad, they just like to sell. i would say guys let's do a 12-month moratorium on selling. not asking for anyone to buy. 12-month moratorium on selling. he's listening to the other things we've said. so that's my new advice. 12-month moratorium on selling. he's got thick skin, so he obviously likes it. that's what i didn't know that he liked it. >> yes. >> i would have thought maybe he'd be upset. he likes that stuff. >> we'll see how it does today. 16% gain or so on friday got people's attention that's for sure. we'll get cramer's mad dash count down to the opening bell in a couple of minutes. we are going to see angela merkel at the white house. pictures maybe at 10:30 a.m. and a presser later on this morning, so stay tuned for that. a lot more "squawk on the street" ahead.

all right, it's a monday and a "mad dash." it's sleeting outside. not the greatest way to start the week. >> yeah flew in. i don't know, might be in dulles. dulles? dulles? >> it's a little ways from new york city. >> speaking of not stopping people have wanted to own qualcomm. every time it goes down there's

always a new thesis about why it should go back. it doesn't really matter. you solve the china fine issue, and then you get back into at least the notion that they can get some momentum. remember, they had a little tip to samsung, too. i don't like qualcomm. >> you don't? >> there are other stocks that are cheaper in the semi business. like a cyprus semi is scheeper. sky -- cheaper. but this has always been the big mutual fund. >> it has. >> very smart company. but there's a lot of headwinds. >> yeah. >> all right. shake shack is our last one. >> it's still roughly a double. >> long bow starts -- shake shack with a sell. price target, 21. kind of a round trip. now, what's interesting about

this is significant expansion risk is what they're talking about. this is a stock that is presuming no expansion. and it's expensive stock. >> how much risk can you take when you're only opening ten stores a year? >> that's why i come become and say that you have to use a chipotle chipotle-like analysis for this. 40, 30 20. you have to think about where it's going to be five years from now. if you go back to the chipotle conference call, they talked about it. said listen -- and they wrote us off the air. except the fact that it might go to the 30s, even the 20s, just have some room. the hedge fund game is oh short here buy it here. no. go read "setting the table" and you'll realize that here's a man who ran scared because he thought that union square cafe was going to be closed by a green review. this guy runs scared he runs

tough. i like the ceo. i'm not saying it's going up. i am just saying either have faith, like you had to have with chipotle, or get in. faith, or go. >> but don't trade it. >> the whole trading thing -- look, it's not that we have an epiphany. >> you talking about the whole trading thing? >> because it ain't working. it stopped working. it's just a hedge fund game. the hedge funds have moved on to oh, interest rates higher short. >> and the etfs. >> they're all algo. pick an individual stock that you like like disney. shake shack, say you want to buy 200 shares. buy 25 here, buy 25 at 35. buy 100 at 30. okay? >> okay but if i think it's going to 30 why wouldn't i just buy all 200 there? because you don't know. >> you don't know. >> all right, we've got a lot of other things we don't know but we'll get some answers. the opening bell coming up right after this.

the opening bell in just about two and a half minutes. a busy week ahead. a lot of fed speak. a lot of earnings.

as you mentioned compared to mattel, not saying a losmt inging lot. was it good on the face of it? >> here's a raise, and they obviously had some good earnings. they had some toys that made you feel like the one guy is executing, the other guy is not. now feels a lot more like an execution issue. >> airlines, not quite the lows of the year. >> when you look at it there's about the average airline stock has about $30. and there's no sales anymore. a couple holds. so everybody's in the pool.

>> we haven't really talked about oil. is that indicative that perhaps it's the ability to govern the trading during the course of the day is waning? >> look i think that oil -- to some degree opec comments about how there's stronger demand and less supply dictating an increase in oil today. >> you want us to calm down. they just can't raise numbers. they're like commodity stocks. >> gas prices by the way, up 13 cents now in two weeks after 120 straight days down.

>> said that's not sustainable. >> when i asked him if he's requiring, he said no. >> at the big board, urban edge properties celebrating its recent spin-off. over at the nasdaq on therapeutics, focusing on pharmaceuticals for kidney and vascular diseases. >> with all of that diamond off show biggest loser, down almost 8%. >> yeah we're getting -- look the individual ones are like just noble corp. look at that one. the problem with all of these is if you had a dividend you've got to preserve the capital. that's why diamond was right to preserve the capital. good piece out this morning by

rbn, which is my oil guy. talking about moore's law and oil. that they are now producing some much more oil with one rig than they used to. so be aware that we are not slowing down on our production. so it may be -- oil seems out of sync with china, with europe and with u.s. production. i know that we don't want it to go too high. or else we lose the retail. >> stocks down, oil higher is how it used to be when the world was normal. so to speak. right? >> right. it's really important -- as oil goes up, these guys can sell oil forward, and there's something good numbers for the oil out two years. so there's liquidity that may be the disaster can be averted.

>> restructurings that are still coming. the consolidation that will take place. and the geopolitical. >> more likely brazil. there's only one ppr left. >> it's incredible. >> they have corruption issues. got to remember they have their own set of issues that would be in place regardless of whether oil was 100 or 50. >> you mean the corruption issue. >> i believe it's the case.

>> brazil is worth watching. not to mention they're going to be hosting the olympics. yes, the olympics. >> their economy, their cash crop is sugar cane. because that's what you use as an alternative to oil. >> they had a lot of soy beans, too. >> brazil is just not a positive story on the landscape. >> apple, of course getting some attention today. it's not up, but did raise their target to 145.

come on guys. >> you would talk to a guy. he says look what's the high on the street? 132. and the next day, he's trying to stake the high ground. you know i mean? >> i do i do. >> playing a new game. not. >> the ten-year on friday jim, got to what some people called a target of sorts. 194, 195. >> you see the utility index down 3%. i mean this is utilities. but that was just totally -- there's a machine or whatever you press it and sell the etfs. i think people felt that the way the banks were trading -- >> and the jobs number. >> that the rates are going higher. jp morgan has come all the way back. >> friday, they had a real rally. >> yeah. that group rallied hard. and i don't think that rally is over. i think at 17% of the s&p, so it

will be very interesting. you know what else is interesting? the faux financials. like visa going down. not rallying. there's money out of the faux financials into the real financials. and i think it's worth watching. because we caught a number of downgrades today. key bank was downgraded. regents financial. i think these are bad downgrades. i like them. >> decker is another downgrade. morgan stanley. >> i still want to know what happened there. that was a big call. the other big call that i'm working on -- are you working on motorola solutions? we should mention that. >> it's bloomberg's story from friday. i have nothing additional to add other than what they've reported. >> the rumor was that honeywell might be interested. i know dave cody. that would be a shocking thing if that's the case. interested in bar code business. he's done that. but this would be out of sync. it would be more in sync with oracle.

not that oracle -- i know you don't want to do big acquisitions. >> i did want to note the impetus behind that appears to be starboard. but it did sell only 1.2 million shares of staples. but it took it down to 4.9% at which point it no longer has to file when it sells. so we'll keep an eye on shares of staples. but i did think it was interesting that they chose to sell. they still own 4-9 conceivably. but now they can sell and we won't know. if they choose to just focus on the odp side of the equation. staples had been up sharply, but came down because there is still great concern as to whether they can pass any trust. >> there was a little deal

announced, harris. a terrific company, spin off of itt. a lot of wealth created there. harris went up very big. which shows you the acquirers are still doing great when they do these complimentary acquisitions. >> yes. and pfizer was up as well. >> that's a very good point. let me put that in. >> what do you put it into? >> he's writing tonight's show. >> i have to write. >> i agree. i worked all night on the red eye. >> you bet i did. >> other people would say that and i wouldn't necessarily believe it but with you, i completely do. >> got some winks. and back in action. >> i say, i'm your number one hater. i've got guys that have been there since day one. guys changing their name every 30 seconds. guys fired in 1998 are still after me. >> he says it's going to be

different. >> dow's down about 77 points. bob pisani is on the floor. >> hey, guys. kind of a risk off day, although energy is up, gold is down. just about right across the board, with the exception of energy. just want to show you what's going on in europe. you heard us talking about this all morning. the greek prime minister saying greece is not going to seek an extension of the current bailout. they're going to try to find some kind of new agreement. the current program expires at the end of february. i don't know what the difference is between a bridge loan which is what they want and an extension, but they're going to be meeting with finance ministers this week. greece down, spain, italy, germany down. the effect on bond yields greece italy, spain, bond yields are up. german yields are down. they are down in france. they are down in the united states as well. so pretty clear flight here to what they consider safer haven

places. let's talk about the u.s. stock market. consumer staples stocks are going to finally start rolling in this week. we've got a few of the old school consumer discretionaries out. this is a seven or eight-year high. i think 2007 was the last time we were in the $26 range. they had a very good earnings report this morning. but more importantly, the revenues are growing nicely. paint business up 7%. they install things for you. plumbing was okay. not enough to deter a move up. hasbro raised their quarterly dividend to 46 cents. that stock not far from a 52-week high as well. speaking of hasbro the international toy fair is going to be happening in nosh this week. the biggest toy fair in the world. 100,000 people will be there.

they did note movements of some of these toy stocks and companies that are around books and toys like leapfrog and barnes & noble. that's this weekend. the s&ps you can see in those two days typically on the downside. so you do get some movement in some of these toys around the toy fare. elsewhere, taking a look, energy stocks are up. not so diamond offshore, which you know is a deep water driller. it wasn't the earnings that were a problem. the board decided to eliminate a special dividend they have. they are keeping their regular dividend. just 12.5 cents a quarter. but they paid a special dividend in addition to that since 2006 as i recall. they are now eliminating that. and i think people were not prepared for that. a lot of people i talked to expected them to keep that special dividend. now they're not. a little bit of a surprise there. i think it's not a surprise they need to keep the cash to sort of reinvest in their fleet. this is a deep water driller. but as with most of these

companies, the or ones have kept it. nobody else is out there actively saying we're not going to do it anymore. i think that was a disappointment. if you look at the other drillers, if you look at noble energy or any of the other ones hero, they're all on the upside today. in fact, the entire energy sector is up. right now, the dow down 46 points. guys, back to you. >> thanks very much bob pisani. >> another settlement out there that is small, indicative of the recent trends that we've seen amongst activists. in this case it's a company that has plans to separate its cranes business from its food service business. and really i think the idea of doing that you don't need to say more than the fact that they have cranes in a food service business. but carl icahn has been on them not just about the separation, which is planned and had been

planned, but also about the governance of the spun off company. and this has been if you will a new theme we've been hearing from a number of activists. most significantly mr. icahn himself. both here and in scripps. the idea having corporate provisions that will allow them to perhaps be put into play as takeover candidates themselves fairly soon after the spin takes place. and in this case we also are seeing more of the same when it comes to settlements rather than fights. and i talked about this on friday. so in this case with manitowoc, they will be okay. we will not have a staggered board. without triggering the poison pill. all of which, mr. icahn goes on to say we applaud because they recognize the importance of both separating the companies as well as the importance of good

corporate governance, and as well mr. icahn will have a right to appoint an additional representative to the board of the food service entity and the right to appoint one representative to the manitowoc board as well. settlements, we talked about it again, as i said on friday. whether it was ipg with elliot there have been so many. pepsi, dow, all of which avoid costly proxy fights and here we see it again. coupled with this new focus, if you will. the one big fight that's out there with dupont about the governance of team work of kimors, which i think i've pronounced correctly there, and what they don't believe as as good as it could be jim, when it comes to the spins. they want the companies to conceivably garner a shareholder base and/or a potential buyer that is best for it. >> well hospira. we've had it over and over

again. care fusion. they're very easy to acquire once they get to a certain point down the road. the problem with manitowoc, and i pushed for this breakup, is that both businesses right now are tough. the crane business worldwide is tough. and the food service business is tough. so they finally listen but they listen at the bottom of the cycles. it feels like timken. when they finally listened it turned out to be the wrong time. >> how a company ends up in the crane business and the food service business -- >> a curious mixture. >> yes. >> the only thing missing was, what a toy business? >> yes. >> great synergy. >> i think that -- yeah. >> it never really made a lot of sense. but, you know there are some companies that sell trains and appliances. aircraft engines. >> and financial services.

>> lockeomotives. mri machines. >> and that makes sense, right? >> yeah. right. sure. no doubt. carl back to you. >> let's get to the bond pits. rick santelli at the cme in chicago. hey, rick. >> good morning, carl. and indeed, even though rates are lower, they're lower at levels that don't seem quite as low. look at a year to date a two-year. we had what on the surface was a pretty good surprising jobs report. we could go through all the small details, but the two-year note didn't wait it popped up. of course, that might have an implication as to when the fed is or isn't going to raise rates close to the highest levels of the year. look at a two-day of tens. we're still holding most of the jump friday in terms of rates, but we're definitely down several basis points. year to date chart reveals we're still down pretty strong for the year considering we settle at 2.17, but many are still caught

the wrong way and the market feels like it's hard to find new buyers at these levels. look at the bunde yields. even though germany's exports were up about 3.5%, their imports were down about 1%. what's really fascinating is what's going on with china. down 3.3 on exports. down 19.9 on imports. these are really really large numbers. something to pay attention to. if you look at what's going on with regard to high yield and corporates barkleys spreads gives you a nice glimpse. granted that stocks are down today, but the rebound in stocks have put them basically competitive for the year also eased some of the pressures with incorporates and high yields. now let's consider the dollar/yen has really been going side sideways. today's action as you see on the year-to-date chart, will be very critical. keep the 120 level in mind. back to you, carl.

>> all right, rick thanks a lot. when we come back, a message from the treasury secretary. hear what jack lew said in a cnbc exclusive. the s&p going to fight around 2050. back in just a minute.

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♪ hello is up for the third straight day on a new opec forecast. jackie is at the nymex. >> that's right. i'm going to get to opec in a minute. but first, talking about sentiment earlier in the session. we were actually down, and that was on the china import data that rick santelli mentioned. but then when those opec figures came out, we did rebound here, 52.86. what did opec say? opec raised its 2015 demand forecast. what's interesting is that opec is saying that demand is going to rise not because there's going to be more global

consumption, but because the depressed oil price is going to impact u.s. production making the opec product more in demand. so really you have to read in between the lines there in terms of what they're saying. i also want to talk about gas prices. lundberg up, seasonal factors and rising oil prices are probably going to make those retail gas prices go up even further. back to you. >> thank you very much jackie. jim, talking oil one more minute. this forecast is interesting. rig count on friday, three-year low. >> right. and they really do say that 2015, you're going to see a decline in u.s. production. i think they're wrong. i think the first quarter is going to be so strong and so much come online that there's no way that the year is going to be down for the u.s. there's just no way. almost every single company has forecast up production in the united states. they're doing more with less. this is that law that rbm is talking about, that you can drill far more wells in the time it takes than it used to be.

so you don't need as many for the recount. and the costs have come down dramatically as these guys are all competing now all of a sudden. so you end up with a situation where i think you're going to produce a lot more oil in this country. but the other thing is oil fell so big. remember, oil wasn't 53 54 55 december 15th when the oil stocks bottomed. so it's not like we've gone anywhere. >> yeah. we'll get stop trading with the dow down 27. don't go away. you can find a new frontier. there's

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time for cramer and stop trading. >> there is a shocking amount of information about pvh. saying they're going to miss the numbers jaigigantically. the cutting numbers for 2015 really bad. basically saying the headwinds from overseas are terrible. this guy is an amazing operator. this basically says to manny, you've got to preannounce. that's how bad we think your sales are. >> sometimes the company uses an analyst report to actually get numbers down. i am not in any way implying this is the case here, but it does happen. >> that's a good -- you know i don't know the answer to that. i do know that ralph lauren when they missed was horrendous.

i know that when deckers missed it was horrendous. i also know that there's a lot of power being shifted to the kohl'ss of sof the world. i was in a jam-packed kohl's in eugene, oregon yesterday. you had to line up to get into kohl's. europe is very bad. manny made an acquisition. this is a devastating report. >> what's on "mad" tonight? i might have some idea yes? >> i'm going to figure it out. i have someone who correctly predicted the collapse of oil. and she's on again tonight. we're doing her work to see whether the collapse is over. because i think that's the million-dollar question. she correctly predicted that we would go through the 50s, and now she's making some noise. why don't you watch tonight? >> there's a tease. >> right? i tease with the best of them. >> see you tonight, jim. >> 6:00 p.m. yes. >> when we come back steve

liesman's exclusive with jack lew. we'll hear what the treasure secretary said about the strong dollar and middle class economics. plus advice for mcdonald's from celebrity chef geoffrey zakarian and jim stewart. we'll talk about their visit to the golden arches in a minute. when the moment's spontaneous, why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision or any symptoms of an allergic reaction stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial.

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good monday morning. welcome back to "squawk on the street." i'm carl quintanilla along with sarah eisen. simon hobbs is back. david faber. take a look at the markets. dow is in the red once again for the year down about 45 points. s&p 2053. oil up for the third straight session on this new forecast out of opec. >> let's get to our road map this monday. treasury secretary jack lew sitting down with our own steve liesman for an exclusive interview. find out what mr. lew thinks. plus, president obama meeting with german chancellor angela merkel today. we'll get a live report about what to expect. >> major volatility hitting the internet stocks in recent sessions. we'll tell you which ones you should be watching and buying now. and coming up a little bit later, don't miss our interview

with jim stewart, who actually took "iron chef" winner and celebrity chef geoffrey zakarian to mcdonald's. find out what he thought of their food and what advice he has for the fast-food giant when they both join us live here at the new york stock exchange. >> so we open the session with weak data out of china and worries over the potential that greece might exit the eurozone. that's certainly weighed on global stock markets. oil, though, offsetting some of those losses with brent rising to $58 a barrel after o'poke hiked its demand forecast for crude. we want to bring in david kelly, chief global strategist at jp morgan. two big strategists this monday morning. hey, guys. >> no fat jokes. >> believe me. hey, to bias this was really strong move we had on the markets last week that took the dow up almost 4%. oil moved the dollar moved, the employment report was great.

is that signaling a change do you think? >> i think there's a change in the market in terms of where people want to be positioning. even though the entire index moved up if you look the past couple weeks, you've been seeing a change in what is moving within the market. we're seeing more cyclical oriented stocks. not a big surprise from our perspective. if you look at small business optimism, hiring intangibles, capital spending outside of the energy space, all that is really still -- it is continuing a positive trend. it's been going on for six to nine months and people haven't really been paying attention to it. >> let me pick up on that six to nine months timeframe. i'm not sure if we can put up a chart of the s&p over the last year or the last six months but what's really interesting is you come out of the ebola scares and the market basically rockets up comes to a record on the second approach in december, and then it found a range. when do you think we broke out, beyond those ranges we set in december, and do you think we

break to the upside or the downside? >> i think we probably break to the upside. i think the biggest risk right now is in europe. it really is a game of chicken, which makes you feel very uncomfortable. beyond that, particularly with what to bias is saying, the u.s. economic numbers are great. i think it's pretty good if we can get past our greek ways here. >> a lot of folks are saying buy small caps. they are exposed domestically. they're not exposed to europe and the stronger u.s. dollar and they benefit from a better u.s. economy. >> about three different answers in there. when rates go up small caps don't do that well. when it comes to valuation

differential, large caps outperform them. then we run more sophisticated models and continue to notice that small caps will underperform. the dollar strengthening hasn't really benefited small caps in the past. >> hey, david, larry somers in "the washington post" today says the feds should not raise rates until it sees the whites of inflation's eyes because wages are stagnant because the u.s. has never been more intertwined with the global economy. you must have hated this piece. >> yeah i completely disagree with that. i know wages are going up slowly. you saw in the january employment report that a lot of the weakness in december really was an illusion. i think what's happened is attitudes are changing here. takes a little while for those attitudes to result in workers demanding higher wages. i really think workers are demanding higher wages. the problem is, think about wars, you generally get killed by the enemy.

>> surely the british empire did rather well on that. the ways in which the market view has changed. and now, obviously concerned that it could happen whenever we get the regular fed speak. what is the dislocation. when people say the fed is worried about dislocating the market, by raising rates, how real is that fear and what does that dislocation look like? >> i think the thought process is more about -- we've kind of been hooked on this idea of very very cheap money. so if all of a sudden rates move higher then anybody who's got debt is going to all of a sudden contract in terms of their plans. i find that hard to believe. when we look at interest income and against interest expense, they aren't that -- they aren't that different. so if interest rates go up instruments start making some

more money. it's do you qualify from a quality point of view to get a mortgage. >> but in terms of market volatility, i mean are we going to expect the foreign exchange markets, for example? do we have to worry about that really? >> for people talking about parity on the euro. i don't know where the currency markets are going. >> i am shocked that anybody is surprised by a currency hit. i am absolutely shocked. when you is a the kind of moves on the dollar, oops, i'm shocked. >> the next caterpillar analyst. >> we won't talk about individual companies. but i am just stunned that the analytical -- both the sale side and the buyer side have missed

on this currency issue. companies were beginning to tell you this. it was so obvious. >> that was a really interesting conversation. thank you for your time. >> the treasury secretary jack lew ahead of the g20 meeting in istanbul. lower class economics, the strong dollar that tobias was just referencing. we're back in a minute. at ally bank no branches equals great rates. it's a fact. kind of like mute buttons equal danger. ...that sound good? not being on this phone call sounds good. it's not muted. was that you jason?

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angela merkel arriving at the white house right now. the president and chancellor merkel are going to hold a bilateral in the oval office. the vice president will be there, too. that's going to be followed by a joint press conference in the east room later. we do expect to see pictures and maybe some q&a. we'll find out. but of course, the big news is that merkel has delivered on the proposal to putin to agree to a road map to stop fighting in ukraine until february 11th. >> the u.s. administration is debating whether it should actually arm the ukraine. that's the bigger issue, particularly in congress. >> jack lew joining world leaders in istanbul. steve liesman sat down with him for an exclusive interview before he left last night. steve, good morning to you. >> good morning, carl. and we talked a lot about world issues as well as domestic ones. i asked him, whether or not when it came to raising the tax rate

on capital gains and this issue of middle class economics, how much when it comes to taxes on the wealthy is too much? >> just reminding you 28% of the kp capital gains rate was a rate when reagan was in office and the economy did just fine with that rate. our top rate for individuals is what it was when president clinton was in office. and this period of uninterrupted growth of american history. if you look at the things that we've proposed they're a fundamental fairness. i think very much the case that if we could make the investments that we're talking about our economy would grow more, and that would be good for everybody. we're not doing things that we haven't tested. we've had an experiment in this country. we had big tax cuts. the economy did not do very well afterwards. so we're going back to policies that are in place when the economy was actually doing quite well. >> douglas olberhelman said

anybody producing in japan, the uk and europe is going to have an advantage over the american competitor and expected to have a negative impact on the united states. are you concerned the dollar is in a place where it's beginning to hurt u.s. jobs? >> i think if you look at our economy right now, it is quite strong and on a relative basis, it's stronger than a lot of the economies we compete with. i think the real challenge is getting other economies to get back in the growth pattern where they're doing better. some of that would then equalize. i mean right now what we're seeing is the function of the u.s. having a very strong economy. which i think is a good thing, not a bad thing. obviously we would like to see more growth in europe. we would like to see more growth in other parts of the world. that's one of the things we were talking about at these g20 meetings. >> what do you say to these american job creators png, apple, all have complained about the negative effects of a strong dollar. >> i think if you look at the last few months we've seen that

there have been different factors driving the economy. we've seen lower energy prices. we've seen higher employment. so i think what's happening to our economy is making it still a very strong economy. i do think that the global economy has weak spots and it is important for those weak spots to be strengthened. what i do think we have to learn from our experience is that if you use all the policy levers that you have you actually can change the course of your economy. >> so, guys, as you heard, i asked a question i asked a follow-up question. but secretary lew is not addressing the negative impacts when it comes to the dollar and i'm not sure why, but he will have to address them when it comes to congress because they're increasingly concerned that this issue needs to be put into some of the trade authority and trade agreements that are out there. >> and you know, it's interesting that foreign exchange always comes up at

these meetings of finance ministers and central bankers. i mean he pretty much made it clear that it is on the agenda. it's something that we're going to be talking about. i wonder behind the scenes if there's a feeling from him and from the u.s. government that other countries are not playing by the rules. >> well we're in a tough spot sarah. as you know, we have been urging europe to do things like quantitative easing. to do things like fiscal stimulus. all of those things relative to what's going on around in the united states would tend to strengthen the dollar. so it's a little hard for us to go over there and say don't do the things we've been urging you to do because now they're starting to hurt back home. so the secretary is in a little bit of a difficult position right here. >> yeah i would agree with you. and i wonder what those growth policies are. this has been his line over the last few meetings. the u.s. is a bright spot. they need to be doing growth and when it comes to europe last time he was pretty specific. >> all of those things should strengthen the dollar versus the european, and you just get to a point where i think now it's starting to become a domestic

issue in the united states. >> yeah absolutely. all right, thanks, steve. when we come back it's been quite a ride for oil prices over the past two weeks. crude up more than 16%. what a rebound. still a higher price is here to stay. we'll talk to the head of the commodities research at barclays, after the break. your mom's got your back. your friends have your back. your dog's definitely got your back. but who's got your back when you need legal help? we do. we're legalzoom, and over the last 10 years, we've helped millions of people protect their families

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welcome back to "squawk on the street." things looking shaky at the shake shack today. those shares are off about 2.5%. off its pre-market lows but still down after initiating the burger joint at an underperformed rating. the price target there $21. shake shack is still up 95% since going public on january 29th but down more than 20% from its first day high of $52.50. >> a target of nearly half. thanks, dom. president obama is hosting german chancellor angela merkel as we speak at the white house to discuss a peace plan for ukraine. michelle caruso cabrera is live

at the white house. >> she's inside right now.-cabrera is live at the white house. >> she's inside right now. they've got an issue between the two of them. right now, president obama is considering whether or not they're going to give lethal aid to the ukrainians to fight the rebels in the east while angela merkel is definitely opposed to that and wants to tell the president not to do that. she prefers diplomatic efforts that have been ongoing with the president of france. the situation in greece is going to be closer to the bottom of the agenda. this in the wake of the new prime minister making a big speech in parliament. and many analysts thought perhaps he would back down after he got the cold shoulder across europe. actually, he came out fighting. he's not going to back down. he's really insisting, something that's meant to be a thorn in the side of the germans, nazi reparations, repayment for the nazi occupation of greece and the costs that were incurred during that time period. that's likely an effort by him to embarrass the germans and to try to give in in some way.

the fact that he didn't back down really pushed the greek stock market lower. pushed some of the european lower. the next couple of weeks are going to be interesting. every day that goes by without some kind of deal we're getting closer and closer to the possibility of capital in greece, which would be close to the possibility of them exiting the euro. back to you. >> thank you very much michelle. obviously keeping an eye on it as are investors. oil jumping again today after opec cut its forecast for non-opec oil supply. as drillers across the united states have been lowering the number of riggs and service. joining us barclays head of energy research commodities michael cohen. good to see you. i know you had one of the most bearish forecasts on wall street. 44 i think, on brent for the end of the year. do you take that higher given what we've seen the last few weeks in term of rebound in prices? >> yeah i think we will consider marking the market just on the last strength that we've seen. but we do believe that oil prices still are likely to go

lower from here. i think there's a couple reasons why. we have to understand why we got here in the first place. you know, refinery margins have been exceptionally strong. we're in the dead of winter. and the market is going to focus on several indicators as to why prices are expected to be higher later on in the year. and the market has been very focused on the rig counts. so what we saw in the last couple weeks is rig counts falling pretty precipitously by about 80 or 90 riggs per week. but we think there's more important things to be focused on and that rig count doesn't tell the whole story. >> like what? what's going to drive them lower before they go higher in the second half of the year? >> well we think that because we're right in the middle of winter right now, as we move into the shoulder season for demand, we're likely to see some weakness again. and also when we look at the balances we have about a million barrels a day of excess supply over demand. so in our view, we have to

incentivize further storage through the course of this first half of the year. in order to do that we expect that the contracts are likely to weaken. >> just a couple of quick questions. why does a decline in the rig count not necessarily mean that production is cut? >> i think there's a couple things you need to take into account. first, we expect the drilling productivity is expected to increase over the course of this year and it has already. the other thing is that there's a delay or a lag between the time that you drill a well and a time that you connect it. there's also other things related to the rig count that you need to take into account. i mean in 2008 and 2009, we saw riggs drop by over 600 in texas, and at the same time in texas oil production only fell by about $50,000 barrels a day. so the rig count doesn't tell the entire story and there's a wave of production growth that we still see producers enjoying from the time when prices were

$100 a barrel. >> and yet you've seen a very strong rally over the past two weeks in oil, which leads us back to that central question of what sort of market the oil market is. whether it's transparent, whether people can see what's going on whether there's any concept really of fair value. it's like a foreign exchange market where you just chase it when it goes up and chase it when it goes down. >> i think it's too hard to tell at this point. the speculative activity. the data only goes back through last tuesday, so we don't really have a good sense of what is driving some of the increase in price. it's our view that the market is going to pay attention to factors. now they're focusing on the rig count. all these riggs, now they can come right back on. >> there's been so many headlines on forecast comments

on prices. are you getting a clear signal a message from opec about what they want to see? >> as far as we know they are sticking to their guns. the opec countries and the saudis have said that they are going to maintain output and maintain output at about 30 million barrels a day. if we take that at face value, then the balance remains quite weak through at least the first half of the year. >> what about production from non-opec members? do you expect that to be cut? >> we are seeing cuts from the u.s. production is down. production growth will be down. russia production growth will be down. they should decline this year. brazil will probably not be as rosy an outlook in this coming year as it was expected to be in the past. >> do you still expect wti to finish the year in the low 40s, even with that rebound that you were talking about? >> we think that there's a lot of different issues that are

going to keep prices depressed. i mean, once prices do go up all this drilling activity can increase. at the same time we expect there will be producer hedging that will take place that will also lead to prices being pressured in the second half of the year. >> all right we'll see. right now, we're still on the rebound. 5331 for wti. michael cohen, head of commodities research for barclays. thanks for joining us today. >> thank you. straight ahead on the program, pulitzer prize-winning columnist jim stewart and "iron chef" winner geoffrey zakarian paid a visit to mcdonald's. what did he think of his first trip to the fast-food chain. they'll join us, as you can see, after this break. he only return i'm looking forward to. for some every dollar is earned with sweat, sacrifice, courage. which is why usaa is honored to help our members with everything from investing for retirement to saving for college.

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german chancellor angela merkel is meeting with president obama at the white house this morning, and topping the agenda the greek bailout and whether the u.s. should arm the ukrainians. cnbc will take that news conference live in the next hour. oil glut? what oil glut? opec is forecasting demand for its oil would be much higher than previously thought. this as its strategy to let others fall to hurt other producers begins to take effect. american airlines lowered its forecast on first quarter profits and margins due to the recent rise in oil prices. talk about investing.

well ronald reid a janitor who died last year at the age of 92 amassed an $8 million fortune. last week residents woke up to find the local library and hospital received the bulk of his estate built up over very salvy stock picks. that's your news update at this hour. >> a great story. thanks so much, sue. mcdonald's announcing this morning that monthly sales fell a worse than expected 1.8% in january. the fast-food giant struggling to recover from the worst slump in more than a decade. joining us this morning, cnbc contributor jim stewart and celebrity chef ands re --ands

reraun tour jeffreygeoffrey zakarian. >> strangers coming up in the subway saying what did you eat at mcdonald's today? >> we talk about shake shack and in and out and the golden age of the burger. what's wrong with mcdonald's? >> i can't tell you if we're in that age, but i just want to say on a positive note it's an incredible company. it's a dynamic american job-creating machine. i mean look what it's done. almost half a million jobs. $30 billion in sales. it's unreal. but i think that they've just -- they need some relevance and they need to like tell a different story. i think a little of that would go a long way for mcdonald's. >> you say a couple of things in the piece. a, change the lighting. they don't need to do that? >> i don't think so. there's 133 menu items?

i have a restaurant in times square. i have like 60 menu items. you don't have to be everything to everybody. just focus and be the best you can be. if they did that a bit more than that, they can incrementally get better. >> this new custom taste menu the worry is that it slows down the service time. >> geoffrey said if they would focus primarily on burgers. you do the turkey burger the salmon burger this variation like shake shack does. i think they could do the custom burger quite successfully. i think that would give them a story to sell. >> the easiest thing is to fix the physical. i always say you need a wow. it should be a wow. like the cover of a book. you want more. you want a narrative. you want a story. when you walk in there, it's

sort of like an oops. >> putting it mildly. >> how did they ever get this bad? the new ones are a lot better. but it's too late. they should have been doing this five years ago. the one on third avenue was really pretty bad. >> look at just the tweets and the messaging we got, which really means that everyone wants them to do better. i think for the ceo coming in that's incredible. >> you mean that people are somehow invested -- >> of course they're invested. emotionally invested. i hate to say it's easy, but at least you know it's a problem. i think that's a great thing. i think that given time they'll do an amazing job. >>. >> they've tried to be more transparent about their ingredients, doing mini documentaries about no pink slime. do you have any reservations about the food, the quality of the food? >> well, what we ate, we had some reactions to what we ate. i thought the best thing i had was the coffee and french fries. some of the things they have they should discontinue because it's not relevant to their

story. >> like the wraps. >> for me it's not relevant. if i want to get a wrap, i wouldn't think of going there. you have to make sure that what you're projecting and messaging is equal to what you're serving. kids are going to want to go for the burgers, the parents were going to have something else the salads. does that make sense? >> i don't think it does. that message has not gotten through. they've got to spend more money on that. come up with clever ideas. you can't just keep saying i love it. that's a real problem. everybody i talk to -- you know like you said there's good will. >> i was doing this just in my head before i came over here. the average spend is about $5 35,000 stores. if they got one new customer in each store, that's like almost $60 million a year. imagine the metrics of that. it's just staggering.

>> he was an electrical engineer, i think from purr dusmdue. it's about the kitchen complexity, as we said. the arrangement of the ovens. how fast your workers -- the food has almost become like a second priority. >> yeah. and the good thing is they figured that out. >> if they called you, what would you say? >> i would invite them in for lunch. >> so good to see you. simon? in the meantime, in the auto sector this morning, a new report highlighting serious security problems with high-tech cars. cnbc's phil lebeau is in chicago with more. morning, phil. >> this report is from senator markey out of massachusetts. he's saying these cars need to

be much safer. all of this centers around a report that was done yesterday by "60 minutes" in which they showed darpa engineers from the u.s. department of defense how you can hack into a car. the darpa engineers were able to show how when they wanted to stop the car, they could not stop the car, or when they wanted to accelerate, they could not accelerate. today senator markey issued two comments. first being drivers have come to rely on these new technologies. he's talking about whether it's autonomous features or whether it's wireless features. but unfortunately, automakers haven't done their part to protect us from cyber-attacks or privacy invasions. he goes on to say, new standards are needed to plug security and privacy gaps in our cars and trucks. now, we reached out to the american automobile alliance, which is basically the trade association for all auto manufacturers here in the united states, and we said to them, look, what's being done about this? although there have been no reports of automobiles being hacked, while somebody is

driving it, this report and clearly the evidence shows that it is possible what do you have to say? and the automobile alliance responded by saying auto energies incorporates security solutions into vehicles from the very first stages of design and production and security testing never stops. that's true. but i can tell you guys this. when i've talked with engineers from automakers almost all of them say the same thing, which is look we realize this this is out there in terms of a topic of discussion, but we haven't seen it happen yet, and we're constantly looking for this and we're trying to make sure that this doesn't happen in the future. but clearly from that video, you saw that the darpa engineers were able to hack a vehicle, and either make it accelerate when the driver didn't want to accelerate or to stop when leslie stall wanted to accelerate. so this is going to get a lot of attention. certainly senator markey's report and comments today are getting a lot of attention in detroit as well as around the world. >> a wake-up call perhaps. coming up joan rivers'

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welcome back to "squawk on the street." i'm morgan brennan. check out aluminum giant alcoa. those shares are under pressure in today's trade. not helping matters, a downgrade by analysts. they're concerned about pricing pressures and deteriorating fundamentals among other things so they cut their price target to $18.50 from $20. alcoa has been gaining 42% compared to a 14% gain.

shares are down about 4.5%. >> that's a big move, morgan. thank you. let's get over to rick san delil santelli. >> welcome back simon hobbs. i'd like to welcome our guest. thank you for taking the time this morning. >> sure good to be here. >> there's certain common threads you always see when the economy fails to reach escape velocity. things like if you spend a dollar on infrastructure, you get three back. heard that during the three quarters of a from stimulus back in '09. but what i see is more debt higher spending, which means higher taxes, lower productivity, and moderate gdp growth. have low interest rates caused these large developed economies to lose all respect for debt? is it really just about a trillion coin? world economy owes debt to itself, so it doesn't matter. your thoughts? >> i sympathize with your view.

my view is we pay a lot of attention to what's happening in the developed world but not enough to what's happening in the emerging world. the emerging world represents 40% of the global economy. they tried a full-throttle kanzian experiment after the 2009 downturn. china led the world with a massive stimulus on infrastructure, and other things. you can spend in haste, but you repent it later. so china spent a lot on its infrastructure and other things building up a massive debt bomb. the problem is that growth has really been weighed down by the huge debt, which is sitting on the books of the banks in china. >> if we're going to separate the sins of the emerging markets versus the sins of the different economies, is it really a different outcome for either? you've just given us a

description of the problem growing with the saddle bags of debt. is it really any different for developing economies other than they're bigger and the game takes longer to find where the pain comes from? >> no it's the same outcome. what the developed world did was very similar. the larger the slowdown is likely to be in the following years. all the countries which accumulated the maximum amount of debt in the five years with the run-up with the 2008 financial crisis are the ones which suffered the most in the subsequent five years, and the countries such as germany which did not accumulate that much debt over those five years. their growth was not that affected. so i think that we all forget that if you take too much debt over a short span of time you're really borrowing growth from the future. there is no free lunch. and often, it distracts from the fundamental issues of economic reforms. i was there in east asia when

the crisis happened, and the big difference was that east asia the same people like larry summers and other people were telling east asia you've got to focus on reforms, not on spending more, and those countries did reform and came out much better because they didn't have the money to spend. >> brashear, thank you very much. i'd like to have you back when we get more on what's going on with greece. i know it's not purely considered emerging market but its economy certainly acts like one. >> greece is emerging market now. >> yeah it is now. thank you. back to sarah, simon carl, and the gang. >> thanks a lot, rick santelli. when we come back big moves in the internet space. how do you take advantage of all that volatility? more on that after this break.

internet and technology stocks have been on a bit of a roller coaster ride. earnings reports from apple to yelp to twitter, creating all sorts of opportunities for investors. here with us to discuss, colin sebastian, internet analyst at robert w. baird and company. when i think about some of the upside surprises who had the best quarter jeff bezos, tim cook, or dick costolo?

>> i think one of the prevailing themes here is that spending continues at a pretty high level. from that perspective, amazon actually impressed the street a bit with showing profit margins a bit above expectations and that related in the rerating of higher. i think in the case of twitter, there was certainly another revenue and earnings beat. that's reflective of that company focusing and turning up the dial in terms of montization. >> does that create as you say, a rerating higher for twitter and it's no longer about great expectations for user growth and monthly active users and more about monetizing, which twitter moved it's been able to do at a pretty tremendous rate. >> yeah. actually, i do think there's still going to be focus on user growth. they have clearly demonstrated their ability to monetize the existing user base. we do sense greater urgency at twitter in terms of driving more product development and we hope that ultimately leads to accelerating user growth. i think that will be important for the stock. >> what do you do with yelp?

that was a disappointment. the stock absolutely plunging. i guess that was on the user growth, on the unique monthly visitors? >> a couple of yellow flags emerged at yelp. certainly a decline in active users was one of them. also though growth in local advertising accounts was also a bit below expectations. so the stock will be in the penalty box here. the company is ratcheting up marketing spend with the hope of accelerating the user growth. and we hope also with the focus on improving the product for advertisers. >> did you get a common theme from all of these names in terms of your research on internet, in terms of the user experience and how these companies as a whole, as a group could perform, or is it really just an individual stock story at this point? >> at earnings season it's certainly an individual stocks story, but there are themes that emerge. first of all, there's rapid change. if you think about the connected living room, the home

automation. we think this favors large platform companies that have the scale and user base already like facebook and google. but also the resources to really go after some of these growth opportunities. it's been more of a struggle for smaller companies, quite honestly. >> so is google a buy here? hasn't been the most popular of stocks. >> we do like google. we made it one of our top picks for the year. the stock is up 8% or 9% since then. also did well with the earnings report. and we do see further upside here as google demonstrates more traction that it's getting in places like the mobile and living room. >> what about linkedin. that was a very good surprise. the stock market reaction certainly reflected that. how much of the good news and the good model and the expansion internationally is already baked in here? >> yeah our analyst mark i think he would like to see a pull-back before getting more constructive on the shares. but incrementally positive.

certainly seeing more of a boost in the marketing side. so great platform and we're just a little more price sensitive on that one. >> it was sort of surprising to me that information technology as a sector had one of the most exposures internationally, and we've seen that with the strong dollar cutting into earnings. we saw it with apple. but are these companies -- can you buy them still anyway because they have so much cost in terms of factories overseas and paying companies like fox con, does that sort of negate the impact? >> well, there is as you say, a bit of a natural hedge for some of these companies that have cost structure outside of north america, the united states. we're still really in the early innings in terms of secular growth, whether it's e-commerce or online advertising or media, there's still a tremendous flow of dollars in spending still coming online. and that to me will be the biggest stock driver over the coming years. >> thanks for joining us.

we got through a lot of names there. colin sebastian, good to see you as always. meantime joan rivers winning a posthumous grammy last night for her spoken word album "diary of a maddie diva." her upper east side penthouse has hit the market. diana olick is there with a look inside. >> the apartment is as intimate an over-the-top as joan rivers was herself. she actually had two versions of the same joke about it. she said, it's what marie antoinette would have done if she had money, or if she had taste. if you have $28 million, you can add your own taste. for now, though, the rooms are as colorful and candid as the comedienne herself. four bedrooms four and a half bathrooms. it has had plenty of work done. once a gilded age limestone mansion. it was converted to condos back in the 1930s, but just an exclusive nine units. ernest hemmingway was said to

have lived here. it has a separate lower level apartment, two kitchens staff quarters, and five working fireplaces, perfect for a day like today. the real glamour, though is in the entertainment spaces. i mean how could it not be? a salon. grand ballroom. it kind of makes you wish that these walls could talk. the celebrity factor of course can help or hurt a property's values, depending on the circumstances. while joan rivers's death was incredibly tragic the family would like potential buyers to see this apartment as a place that was full of laughter and entertainment, and they'd love for people to see it as over the top as it really is. >> is it a condo or is it a co-op? >> it is a condominium, which was interesting. in the 1930s, it was converted to condos. >> have you taken a peek inside the closet? >> okay so we're not allowed into the personal areas. i have actually taken a peek in there. the closet by new york standards, it's not huge but

you're talking new york here. i did get a look at the bathtub, though. i wish i could show it to you. >> i was actually invited by joan collins to thanksgiving dinner. >> joan rivers. >> joan rivers. i actually never went which was rather silly in hindsight. >> do we know what she paid for the place? i think she lived there for quite some time. >> she lived here for 25 years. we know she did list it once for a little bit more but then decided to take it off the market because she couldn't part with it. you guys do the mavt right? >> i think one of the things that's come out since her death is her savvy as a businesswoman and selling to the likes of home shopping network, things like that. >> you're looking at her selling savvy right now. we're going to be showing pictures all day. it's on cnbc.com of course. even after her death, she certainly knows how to sell. >> it's fascinating. diana, thank you for the

moment. diana olick. at joan rivers' house. >> yes. joan rivers. not joan collins. >> it's very confusing. >> let's send it to john ford and find out what's coming up in six minutes time. >> we're going to talk grammys. the intersection of social and broadcast. lots of interesting fodder there. can you believe it's been ten years for google maps? it seemed crazy at the time but it's turned out to be a really astute investment. and finally fast company's most innovative company of the year. we'll let you in for a closer look coming up on "squawk alley." about, say organic food stocks schwab can help. with a trading specialist just a tap away. what's on your mind lisa? i'd like to talk about a trade idea. let's hear it. [ male announcer ] see how schwab can help light a way forward. so you can make your move wherever you are. and start working on your next big idea. ♪ ♪

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welcome back to "squawk on the street." motorola solutions, one of the biggest gainers on the s&p today. it is reportedly exploring a sale. bloomberg says it's hired banks and spoken to private equity firms to explore that possibility. the company currently has a market cap of about $16.3 billion. the last remaining piece of motorola after google bought motorola mobility. those are up about 5% today. >> let me take you to the white house for a reminder that we will have within the next 40 minutes, a live news conference between angela merkel and

president obama. what will they do with ukraine? merkel wants to deal with putin. a lot of people on congress would dearly love to arm ukrainian government. we will get some comments on greece as well with the americans pushing to do a deal with greece. probably the biggest story that we have moving forward. >> front and center for the markets right now. we are looking at a nearly 90-point decline. we're seeing it across major indices. everyone's watching this after the new prime minister made a pretty defiant speech. >> of greece. >> of greece. >> and the question is what are they going to do about it. >> let's hand it over to "squawk alley." >> good morning. it is 8:00 a.m. at the staples center in los angeles,

california. 11:00 a.m. here on wall street. "squawk alley" is live. ♪ welcome to "squawk alley" for a monday morning. joining us is john steinberg, and the ceo of indy go-go. the dow down 85 points, close to session lows. first up this morning, it was a very big night for the music industry both on the small screen an on social media. the g