welcome to squawk box here on cnbc. i'm becky quick along with joe kernen or andrew ross sorkin. this is the final one of the year. it's the quarterly expiration of stock and index options and futures and you could be in for a volatile trading day ahead you're going to see right now the futures are indicated down another 85 points. yesterday the dow was down by 253 points wiping out all of the gains from wednesday's trading session after the fed raised rates and then some and with

nine trading days left stocks are on pace to end a winning streak. investors running. stock funds posting $13.2 billion in outflows. that is the third straight week of withdrawals. investoring pulling bond funds in the last week. they recorded their largest one week net withdrawal since tracking fund flows in 1992. the dow and the s&p now both down for the year. nasdaq still higher. >> got ripped off yesterday. finger. >> that's a couple of fingers. >> it was pretty ugly. >> it's like a pinky. >> after the victory laps on wednesday. you know, i'm not going to mention any names but he sits right here with me a lot of times. it couldn't have been a better outcome than what the fed was

hoping for. need more than 8 hours. >> we knew the fed finally raised rates and now we're back to the uncertainty. >> i hate fridays after bad thursdays and then the mondays have come -- it's no reason to think that yet. maybe oil rallies today. maybe oil rallies. but in previous bad friday. >> turn monday into a holiday. >> yeah. let's do tell you about oil. mixed oil prices hovering around the lowest level since early 2009. both brent and wti now down 40% this year and now saying that he doesn't see that changing anymore soon. here's his call on closing bell yesterday. >> i think if you were to look up five or ten years, if i was a member of opec i would be pumping as much as i could today. it's worth something because it might not be worth a whole lot by 2030.

>> he is short most major leveraged oil companies though he didn't give specific names. he holds a short position in solarcity and he wishes he could borrow more to short that company. >> we're like the stone age because we didn't run out of stones. we will probably move beyond oil. between now and 2030. we don't have any idea what technology might come up with by then. probably some hydrocarbons left obviously but a lot of exciting things. >> well, that's, you know, you look at -- that's just pure economics what it costs for a btu down here and a btu up here. why pay less? you would never say that, would you? >> what? >> why pay more? >> let's also tell you about goldman sachs this morning. it's sticking by it's bearish crude call. the firm sees more weakness ahead citing week fundamentals after opec didn't cut production. in a research note goldman sachs says it's not in their interest

to balance the market. also that wall street firm predicting a $20 barrel bottom. now this is the break even level for u.s. shell producers suggesting if oil falls below that point companies will have to make output cuts. >> global news, it is a bit surprising from the bank of japan overnight. keeping it's base money target unchanged as expected but also announced plans to increase the purchases of etf and expand the duration of the japanese government bonds it buys. it's going to go from 10 to 12 years. it's going to buy etfs actively spending on capital expenditures and wages. sending the nikkei on a wild ride spiking briefly and closing down by nearly 2%. >> you saw the note that we got that pointed out some of these issues. he said that it was really confusing. the bank of japan managed to confound the entire markets.

they're going to be expanding their universe. they would be spending more and more easing. yen went on a wild ride too because of this. the yen went down significantly and when people realized they wouldn't be spending more money all of that bounced back. so it was some confusion set up by the bank of japan and clarity in the markets and liquidity disappeared. >> we're going to take a break next week, aren't we? >> thursday or so. >> thursday is christmas eve, it will be a break. but that also means people in the markets at the times that you tend to see less -- some quicker more volatile moves. >> but then not so great things. it's been best of times. you said that.

>> apple plans to launch it's mobile payment service in china by early 2016. the technology giant partnering with china unionpay and 15 chinese banks to make that happen. apple pay will compete with ali pay. in other news amazon is in talks to build it's own overnight air operations. including in the plan is leasing and leased 20 cargo plans. amazon is in talk with boeing. the e-commerce giant is looking to replace a lot of the workout sourced to fed ex, ups and other shippers and you have to wonder what that's going to mean for all the companies. the gold is to lower the risk of package delays and save on the margins too. amazon shares down by $2.55. >> that's the corporate news this morning. volkswagen hiring to help administer the new diesel emissions claim program. this will cover the owners of about 600,000 vehicles that emit up to 40 times legally allowable

emissions. it's impossible to predict costs. he is going to be joining us live at 6:30 eastern time. and i hate to say that he's never out of business but there seems to always be some kind of crisis with some kind of company that wants his services. >> what happened on that picture we had? >> he has a tough job. >> usually you see a picture like that but you see a side by side pick. take a shot at it. side by side with another picture like that. >> after a mug shot. >> kind of. >> he took a shot at you. >> like that? >> yeah. >> stocks to watch today,

reuters, caci is a top contender. also glasco smith kline says it will buy drugs at different stages of development. company will pay additional with future payment of 500 million. and wells fargo that waited almost three minutes after the fed decision selling it's agricultural property to zurich insurance. 675 million plus excess capital at closing. >> and long-term troubles are close to bottoming out. after 18 consecutive months of declines. also a major republican donor. at a news conference today he said he may not pick a candidate to back before the primaries. he hosted this week's gop

presidential debate in las vegas. also was just the mystery buyer of the local newspaper in vegas ultimately there were investigative reporters that didn't figure out who won the newspaper. he shouldn't have bought that newspaper. he should have bought the south morning post. >> i have another paper i wish he would buy. >> if you were trying to control the -- part of the issue was the thought that he was buying the newspaper to control the political conversation both nationally given how important nevada is. >> i know where you're going. i know what you're doing. >> changing subject. >> changing subjects. >> they completely blew up.

like oh my god it's close to -- it might be worth buying that. >> this great column suggesting that michael bloomberg buy smith and wesson, the gun company. >> that was the daily news. >> why? and shut it down. >> no, to put technology into it. >> in other news again. >> some of the viewers with us will understand. >> and every day they cause more people to join the nra and more people to buy. >> let's get a check on the markets. the u.s. futures are under pressure. dow futures down by 85 points after major declines yesterday. s&p futures off 10. take a look at what's been happening in europe early this morni

morning. the ftse is off by a quarter of a percent. in asia overnight we told you about what was happening in japan. the nikkei giving up 2% after being up significantly based on what the boj was saying. the initial read was that the bank of japan would be expanding and spending even more on quantitative easing. turns out that wasn't the case. they were just talking about different classes of assets and that was the huge reversal. the nikkei went from up several hundred points to down by 366 points. also oil prices, yesterday, wti was down another 1.6%. it settled below $35 at 34.95. that's the lowest settlement since february of 2009. below that you have to get down to 34.62 and we're on our way there. 34.74 for wti right now. >> for sure? >> no, nothing is for sure. down from that. ten year note yielding 2.216%.

the euro yesterday hit the lowest level against the dollar in over a week. you can see that the dollar is up this morning at 108.17 but it was as low as 107.99. also the dollar is down against the yen at 12151 and those moves were based on what the bank of japan did. gold is up $5.80 cents but gold closed down and that was the lowest settlement since 2010. so no flight to safety in terms of heading to gold. >> how long did he write for the business? >> years. >> and he wanted to get on the editorial page and now he's leaving to do sports or something. >> doing sports business. he has a big book coming out. >> but he's going to leave that. >> to cover the business of

sports. >> how do you cover sports in the most possible way? >> he has a great book coming out. >> he's a good friend of mine. >> that speaks volumes there. >> it should. and it's talking about the ncaa and the question about the economics of how you should do with players or not and there's very large questions not just about the business of sports but about the economics and cultural implications and money that relates to sports. that's what he focuses on and he's doing a -- >> going to pick a side one way or another. >> he's doing a killer job of it and i'd be on record saying that. >> sounds like fun too. >> how much did bloomberg spend so far, do you know? >> i do not know. >> but he was going to spend millions and millions and millio

millions. >> but it's a debate. not a lot of people mention that but somehow for the first time in 20 years even assault rifles, 53% of the country did not want a ban on this. so maybe you ought to try not spending money on it. maybe people just disagree with him on things. >> i know you do. we're on different side of this debate. >> but, no we don't agree on this stuff. >> it's been a big week for wall street after the historic fed decision. joining us right now is allison deans. a consultant with aa deans advisors and cnbc contributor. also he is a equity manager at jp morgan bank. what happened? what's with the volatility? we thought the fed did everything right and the next day game on again. >> markets are continuing to try to fig our out what the path is. if you look at statement you can look at the dot plot or the

reaction and you found something that supports everyone's views. you have a dovish statement and hawkish dot plot and market which believes neither. >> so we don't know where we're headed. >> correct. >> we had some sort of certain they the fed is going to raise rates and that lasted 24 hours. >> we had certainty that we would have a move and we didn't know what it would mean and depending on what piece of information you look at you can find the bullish story or bearish story and against this backdrop you have data and data continues to be good one day and weak the next. >> that's part of the huge issue. we are trying to figure out if all the signals we have seen is just signs of weakness in the oil patch or is this something that's broader signals that a recession is coming next year. what do you think? >> i don't think a recession is coming. we're continuing to see steady improvement in the economy but it's a positive trend and we're finally starting to see wage growth. >> it probably means the fed is

going to raise rates sooner rather than later. >> but my view is raising the rates feels healthy to me. if they do drastic raising of rates, it's not a smart thing to do but gradually raising rates feels healthy and it's a positive indicator of the strength and resil yen sy of the economy. >> are you a bull or a bear at this point. >> bull on what? stock markets i'm a bull. earnings are getting better. valuations are on the high side of fair but not expensive yet and as allison pointed out, wages are improving. wages will get spent and earnings will grow. >> we know earnings will grow in some sectors but when you watch what oil is doing, the dow futures are down triple digits. now you're looking at the dow futures by 115 point bess low fair value. part of that as wti is continuing to weaken. now oil at 34.51 and that's below the next technical level we were looking at.

yesterday's settlement was the lowest since february 2009. >> pile on. >> right. >> that market is easier to move than the overall future. >> but the futures are following it. >> futures were down 120 for most of the morning. and here we again after 230 or 240 yesterday. >> 250 yesterday. >> 253. >> 200 on friday or something. >> last friday? >> but it still happened though. >> i know. my blinders were on last friday. >> how much last friday? >> well, jack, what about this? this lock step that we have seen with the markets following oil? >> markets follow oil. effectively i think oil has to some extent been an indicator of global interest rates rather than interest rates. so how do we measure whether growth is robust or weak?

people look to oil as that indicator. >> is that fair or right or a supply story? >> well, you know, supply and demand tend to try to balance overtime. right now we had too much supply and demand is some what weaker than people would have thought coming into most of this year. it reminds me of the mid 80s. oil went from 30 to 10. that wound up being fairly hisable. texas suffered a lot at that point in time but last time i checked they were a good time to be in the equity market overall and it was a nice time to be an oil consumer. >> just in term of what we should be looking for, what stats you're following most closely to tell wrus the economy is headed? >> interestingly enough this is a point in time where you might separate u.s. economy and the s&p 500 in the market which is is u.s., when we look at economic growth it's domestically oriented. when you look at corporate profit it's global. 40% of revenues or more come from overseas and part of the weakness in soil we're seeing

slower growth overseas. europe is doing a lot to try to improve that as is japan and other parts of the world but corporate profit growth could remain tepid because we don't see enough going on overseas. >> do you like stocks in the united states or stocks globally better? >> i like stocks in the united states. >> jack, allison, thank you for coming in. >> thank you. >> coming up, the sports video that everyone is talking about this morning. a scary moment at last night's cavs game. it involves lebron james and the wife of well-known pro golfer that just had his first major. >> plus drug ceo martin shkreli busted for security's fraud. we're going to talk about that story next. first though as we head to break, here's a look at this date back in history. ♪ your news?

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requires the next wave of security. we're ready. are you? >> released on $5 million bond after being arrested yesterday on charges of wire fraud. he has come under criticism for price gouging. being accused of not of

something related to that but a scheme when he was running a hedge fund. losing money for investors and lying to them about it. taking assets from one of his businesses to pay off debtors in another business. releasing a statement that he's confident he will be cleared of all charges and ponzi victim dos not make money yet mr. shkreli's investors enjoyed results. the senior associate dean for executive programs at the yale school of management. runs a business summit twice a year. ceo summit and i don't know how much of a conversation this was yesterday. >> turned out to be a pretty big one. the underlying theme had to do with building trust in american business and we were balancing off the paradox of inspiring visionaries versus cynical pragmatists and concern about public trust was rampant.

we had richard presenting some of his new trust data but just the sentiment in the room was the next biggest issue after there is, you know, kind of an enormous concern over isis, there's inequality and then this notion about, 80% of the room, can you believe it, 80% of ceos said that they don't believe that the little guy has faith in the financial markets. >> how much does this have to do with it? to me this is a fascinating story but it's sort of an individual story. >> well it's an individual story and certainly not representative of the fantastic ceos. all the bio tech folks you bring through here and happily the industry in this case unlike in the enron days they draw a line in the stand. all condemned the guy. and yet that's business

practices. we talked before about the prices at turing and this is financial fraud at a prior company. you're wondering who were the investors in this hedge fund. how does he get more money coming into him now and i was think oing of all the criminals that have done these ridiculous things, that wind up getting these love letters and things. we seem to get drawn to the fast nation of it but also bio tech, in particular, going back to patent medicine days seems to attract a lot of scammers. >> do you look at his prosecution as politically motivated? some people suggest yesterday this is like going after capone. you hate him for raising the drug prices but you get him on the other fraud. >> i wish bill was running the sec right now. we have a very talented, smart,

independent minded prosecutor. i have never seen one so buffeted by headlines and politics before. you're looking at a completely different matter. you were talking about iex. the kind of pressure they're under with the flood of letters reviewing this great new honest exchange coming in there and you're wondering why hasn't the sec cleared this new exchange already which we know is bringing out an honest transparency to markets. this case has been languishing for a long time. suddenly because of headlines it's responding. i'm concerned about the enforcement division of the sec. that's pure politics. it's absurd where they have taken somebody where there's no investor complaints and they have had it for seven years and for some political reasons you can see they're suddenly torturing this great turn around but this is a country patriach

that brought some 75 companies back to life but they're responding to headline issues. >> this is flat out fraud. when you read the charges. >> exactly. >> he was taking money from one set of investors and paying off the others. >> allegedly. >> allegedly. >> but definitely that's the case. you have seen thiez things even in the philanthropy world. renowned people innocently signed off on what turned out to be a huge ponzi scheme, robbing peter to pay paul. when you sniff that stuff out you have to kill it off. but the fact that they didn't do it months ago, why now as to your question. it should have been quite awhile ago and he's tried to drape himself into the fact that this relates somehow to his pricing. >> real quick before we know because it was a conversation that happened yesterday i heard from a birdie about the dupont dow debate and what happen there. i don't know if this happened

out in the open during the sessions but i know that you obviously sparred with nelson peltz for a very long time. now you're supportive of that transaction? >> i'm very supportive. i think he's one of the most brilliant effective leaders and i don't know an analyst that doesn't agree. >> but you were upset about the activists that were going after dupont originally and now you're supportive of the transaction which was all about ousting her. >> i'm not completely supportive of the transaction. it's a great deal for dow. dupont's board is shameful. it's a suicidal board where they lost their nerve. they should have stood behind coleman doing a fantastic job. and was having a rougher year this year but with one bad quarter, there are 20 ceos who have been on this show in the same period of time westernings

misses anywhere to two times to five time what is hers were. >> you don't think this transaction is the right outcome. >> it's the worst time in the history since we have been doing what we're doing to sell ag chemicals. so dupt is coming into this at a low bargaining position. but the chaos created, antitrust i think vulnerability they have plus midland's, you know and wilmington in total chaos and slicing up the r and d is a big mistake and it's a lot to do with personalities and going down with their hands together at the feet of peltz. symbolically it's crazy. >> congratulations. we appreciate you coming in this morning. >> thank you. >> in squawk sports news this morning, a scary and surreal

moment this morning, lebron james was chasing a loose ball and the 6'8", 260 pound forward ended up plowing into a female fan in the front rowand you can see right there and that woman happened to be ellie day, wife of pro golfer jason day sitting next to her. she is taken out on a stretcher and in a neck brace to a local hospital but just looking over the more recent news that i just found, she was in overnight for observation and she told lebron i think i'm okay and squeezed his hand and said it's going to be all right so hopefully nothing serious and you can see the shock on jason's face as it was happening. but hopefully she gets out today and it's nothing more than getting shaken up a bit. coming up you know that your company is in trouble when you have to hire feinberg to manage

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good morning and welcome back to squawk box first in business worldwide.

it's witching friday. that could be a volatile trading day ahead. especially with the fed on wednesday, right? and then nice day wednesday. impact most of that. impact more or almost all of it yesterday and we're indicated down triple digits so far today. everything is keying off oil which last we looked at that was a new low. 1.25% again today. basically for the last two weeks in free fall down well below 35 right now. >> and among today's big corporate stories volkswagen is handling claim resolutions stemming from the diesel emissions scandal. phil joins us and he has a very special guest with him. good morning to you phil. >> thank you, andrew. let's bring in ken feinberg from washington d.c. when you announced this program yesterday and that you were hired by volkswagen you made it clear that this is just the

beginning. you still need to set up the parameters. what do you invision in terms of the types of remedies or people that will be able to come to you and say, look, i have a diesel volkswagen model and i deserve to be compensated for driving a vehicle in violation of violation scandals. >> the regulators are looking at it with volkswagen and on top of what the regulators are requiring, what will it take in the way of protocol or compensation or some other benefits that will voluntarily entice owners out of the legal system into this program for promp remedy and that's what we'll have to see. >> can you see one remedy being buying back the vehicle. somebody comes to you saying

i've got this car and i don't want it or want to drive it. i don't want to have it fixed. i want volkswagen to take these key and pay me. >> a possibility to invision. sure it's a possibility. i think over the next 60 or 90 days, some time frame, months like that, we will develop a menu of options, offers for any owner of an eligible vehicle to voluntarily have a choice. i like that option and i sign a release. i will not litigate. i would rather get this quickly and that will be their option. >> you have been talking about vehicle owners, vw owners, what about dealers? look i am an owner of this vehicle. it might have bought it on a used option and now it's sitting at my lot and yasiel it. there's i'm a customer.

would dealers point of impact bli be part of the program? >> possibly. i have to sit down with volkswagen over the next few weeks and months. who is eligible to participate in this program? who is eligible? what vehicles, what purchasers, what vehicle? whatever. what does volkswagen want as to the scope of the program? now once you -- as you guys know, once we start administering this program in the next few months it will be an independent program. volkswagen has already agreed it will not second guess what i do as administrator as to any particular claim but before we get there the first order of business is to design the program answering some of the very questions that you oppose this morning.

>> you have done this with general motors. relative to corporate events like this that you have been brought in to ajude kate how quickly do you think you can wrap this up? is it fairly self-contained? you say i think this would be quicker than some of the other programs we have done? >> i hope that's the case. don't forget, one blessing here, no deaths, no physical injuries, no automobile accidents resulting in people, drivers, and wheelchairs. this is automobile problem. and i would hope that the fact that we don't get embroiled in discussions of injury will allow for a more accelerated program. i'll have a better handle on that over the next few weeks after i sit down with the company and then i want to sit down with the lawyers and representatives of the owners. i want to certainly sit down and

learn from the regulators. epa or the california state environmental people what they require in the way of a mix. that's going to be very important that i'm not doing a run around of anything that they're doing but at the same time that customer satisfaction is vindicated here. >> joining us from washington d.c. first on cnbc. there you heard it from ken himself. they still need to develop the parameters but once we get some established in the next weeks it will be interesting to see how many vw owners say i'd rather do this than try to take them to court in order to be compensated. >> thank youment when we come back, today is being hailed as free shipping day. we will tell you why, next. plus, santa has a tough job. so it's not surprising he needs a little help. we'll visit santa school right after this. ♪

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we are a week away from christmas and the north poll is getting ready for santa's big day. courtney reagan joins us with an interesting twist on that story. courtney, good morning. >> good morning to you becky. well it's perhaps the most well-known job in the world. so naturally you have to go to school for it. yes, virginia there is santa school. actually there's several. the charles w howard santa school is the world's oldest

santa claus school originally founded in 1937 and in new york. 45 hours of training is crammed into about three days. this year's class number is 130 students and there's a waiting list every year. >> took me about a year to get in the santa school. >> i have been coming here about 13 years. >> santa school starts around $400. a good custom suit can coast around $2,500. many clients pay santa anywhere from $30 to a couple of hundred an hour. now santa brings happiness and hope to children and families of course and also brings in traffic and in some cases revenue from others. the better the santa, the bigger the draw. >> it gives you a better perception of the store. if you have a nice professional looking santa, if he is educated and knows about the north pole.

knows about elves. knows about everything that santa should know about. >> it's a calling. they can't all be santa clauss. >> they were helpers of course as we all know there's only one santa. this is the dream place experience. it is a dreamworks production which also runs a santa university. it employees 4,000 of santa and it's helpers at more than 3,000 across the country. >> it's a school not to be really the real santa. it's probably to be one of santa's helpers, right? >> they're all santa's helpers. >> right. >> and i imagine bad santa probably flunked out or something because he -- >> do they teach them what to

say when the child asks are you the real santa? >> yeah. >> part of the -- you know that bad santa 2 has been scheduled and it's going to happen and billy bob is coming back to reprise his role and kathie baits is going to play his mother and the guy that directed mean girls is going to be the director. it's going to be next year. right around this time next year and billy bob has been wanting to do it. it's not going to be breaking a lot of new ground but just as disgusting and underhanded and vulgar. it's become a classic among people. >> have you thought about trying out for bad santa 3? >> i'd have to -- i'm thin, dude. i can't -- it is every day here. the ceo of black and decker will join us next. but first check out the u.s.

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our next guest, runs the largest -- storage manufacturing. okay. owns 30 major brands like household names like dewalt and

john lundgren has been with us a lot. he's vice chairman of the national association of manufacturers, and a lot of things you've dealt with, john, i saw the total amount that manufacturers lost was a couple hundred billion dollars, wasn't it? >> sure, sure. >> stanley sells how much abroad? >> just normally 50%, right now, 70% comes from outside the u.s. based on exchange rate and produce about that much outside the u.s., and for us, a company, $11 billion in revenue, and it's $220 million of foreign exchange head wind at the operating -- >> if you bank that outside. >> yes and no, becky because some is imported. that's the good thing. the 220 million in the public domain, that's the forecast in 2015, that is half translational, pure fx, and half transactional. when you make premium

professional products in foreign countries, not all products you source locally. or it's difficult to source locally. we have a plant in brazil, facilities in china. there are a lot of dollar denominated components in those. we save on labor, becky, as you suggest, and other things, but half of that is translational, and half is what is transactional. >> some of the loss to labor in other countries is not because of labor being cheaper. you could make it here, but it is because you sell there? >> yes and no. >> some comes back, right? >> we brought 10% of our manufactures, combination of mexico and china, back to the u.s. in south carolina which is good for us, taken a lot of -- it's shorted the supply chain, taking product off the water and begin us a lot more flexibility. you recall last year or earlier this year, the west coast port strike, we were really

advantaged because we were able to produce power tools in the u.s. as an example, but that's more of a serve the customer and see if we can do it at equal or slightly greater cost opposed to a pure cost driven thing. >> how much worse is the manufacturing industry than a year ago? the fed should have done it a year ago rather than now. >> no, no, no. >> hyperbole to say it's a manufacturing recession in the united states right now? >> manufacturing, it's a broad subject. if you think of our business, a lot of what we do is related to construction. >> so you -- >> construction business is good. about -- 50% of the business has something to do with construction. two-thirds of that is either residential repair and remodel, and new construction. the other third is commercial construction. that part of the business is good. look across our industrial segment, yeah, it's slowing down with the exception of automot e automotive, the other verticals we served. if you look at ipi, industrial production index, they are down,

and it's soft. >> stocks been up this year, up three straight years? >> must be the management, don't you think? >> i think. >> thanks, joe. no, i'm just proud of the team i lead. a lot is driven organically in the 6-8% range in a market that's up 2-32-3. a lot of product features, it's been on this show, and we drive organic growth. historically, we've grown a lot by m&a. that's on the horizon. >> who looks good? what areas? >> areas, i can talk about, not targets. even though we're the largest tool manufacturer in the world, it's a fragmented industry. our global market share in global tools and storage is 15%. we want to be a consolidator. >> globally makes sense.

>> good opportunities outside the u.s., but our areas of focus are global tools and storage, engineered faceting, a great business serving the automotive industry. >> who is the biggest competitor for you? >> varies by product category. power key, jam these, and german. >> they want to buy youen and put a tax rate on you? >> a transaction like that would be for strategic rationale, not inversion. >> paying more than someone here? >> that's the theory, weak currency. we feel good about our multiples. >> receivers them right. they have weak currencies stealing our bacon producers, right? remember when that happened? you know -- >> it was our nascar park. >> all right. john, thank you. >> pleasure to be here. seasons greetings. >> thank you, you too. when we return, top stories, and dom has the port folio list to check not once, but twice, the naughty and nice list straight ahead.

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only 1% of college students are american indian. donate now, and help our numbers grow. ♪ out on bail of arrest an securities fraud. we break down the case against the 32-year-old ceo. congress voting today on a budget bill lifting a 40-year-old ban on oil exports. john hess on set to see how the deal shakes up the industry. faithfuls lining up for the release of the force awakenawak and the force is strong for the super rich, shelling out thousands for memorabilia. >> merchandising! merchandising, where the real money from the movie is made. >> the priciest items are at the squawk set as a second hour of

"squawk box" begins right now. ♪ live from the beating heart of business, this is "squawk box." >> i feel bad. i feel really bad. welcome back to "squawk box" here on cnbc, first in business worldwide. i'm joe along with becky and andrew, and u.s. equity futures under pressure this morning. we were -- oh, worse, that's the lowest seen this morning, and it added to yesterday, and then add it to last week's downdraft, and we're definitely in the throws of a little bit of a pullback here. we'll be below it after -- below for the year. >> yeah. the dow and s&p down for the year before. >> yeah. santa claus, he's in that stupid school that courtney talked about rather than helping with

the santa claus rally. get back here quick. look at the price of oil. a little bit worse. is that below 2008? it is? >> yeah -- no. actually, i don't know. 2009 we were sitting at 34.62 i believe. >> it's close. market struggles to go up as oil goes down, whatever the reason is. slower economy or just all the parts of the s&p. yesterday, the s&p oil stock led it. what's after friday? >> saturday. >> well, yeah. but i know that, but monday, people are in a bad mood, but hopefully it's a good mood. >> it's the end of the year, a holiday week, everybody's off christmas eve and christmas.

>> we work? >> you do. >> you work christmas eve morning. i'll be there with you. >> all right. >> absolutely. >> you will there? >> no. enjoy. >> oh, just the boys. >> she does it early. >> smart. >> prepared when vacations open up. >> we're in the same minute when we get vacations in. good morning, everybody. in the headlines this morning, the house passed a package of tax cuts. the bill makes permanent tax breaks that were scheduled to expire. that is combine with an extensive spending bill that then is sent on to the senate if it's getting house approval. the vote comes today. apple plans to aunlaunch apple service in china next year through a partnership of state own card, union pay, faces competition from ali brbaba. home builder, lenar, quarterly profit of $1.21 a share, 9 cents

better than expected. new order up 10% over a year ago. and as we approach the end of the year, it's time to check your portfolio, in this case, academic it twice. dom is here to break down stocks that are naughty and nice on the list. good morning. >>ed dp good morning, andrew. a week out before christmas, investors check the list, again, to see whether or not they have performers or under performers this year, and some say a story. look at the stocks, at least, that have been on the naughty and nice list. first of all, there's tiffany on the luxury side. you see here from the 52 week high, a low, a steep decline, now down a third of the value just in the course of the year. retail side of things, not a great story for the consumer. another one that plays a role in what's happening in the overall markets here is what's going on here, again, with kansas city southern. transportation stocks, very much a focus, of many of them underperforming. will that continue and be a

leading indicator? energy side of things, we talk about oil, gas, and everything else. those are important. also, metals and minings companies, right? freeport, three quarters of the value gone. nu naughty list. on the nice list, the megacap stocks are doing well generally peek speaking, and overall, a number of good positive themes. first of all, amazon.com, year to date, up 114%, a steady asent throughout the course of the year, almost more than doubling in value. look at other ones here too as well. first of all, again, another big part of the story in the market, consumer staple stocks, clorox, up near record highs. another to cap us off on the nice list. activision, that chart up 92% nearly doubling this year. back to you guys. >> all right, dom. thank you. come over here, while you are here, join us to play more about

the feds' move and where the markets are headed. we're joined by fidelity's director, and mike ryan, chief investment strategist, and, mike, you're on set, tell us what you think about what the fed did, why the market first looked at it one way and turned around a day later. >> first of all, i think the fed did what was appropriate and needed in terms of resetting policy by 25 basis points. that may have been the easy part, becky, but it's how the fed signals going forward. they have to continue to emphasize they will be conditional, but is it going to make sure they respond to the economic conditions bur, but th are not purely reactive. at the same time, they have to give a sense there's a pathway they set, but it's not determined. that's something to negotiate, and that's the reason there's volatility in markets. that's a narrow corridor to negotiate. >> it also means, look, they are not telegraphing like they had been to this point i expect because they are boxed into a

corp.er. >> once you predetermine a course, the market starts to second guess. they can't have the market speculating, is this the moment, will they or won't they? they have to give guidance about what they will be focused on. it could be, again, the employment data, could be what we see in terms of manufacturing side, could be what we see in terms of the inflation data, and have the markets focus on the accumulated data, and not the middle east recent data point. >> we thought to this appointment the fed's toughest task was deciding whether to go, but hearing this, maybe the toughest part is now going to be getting to normalization from a move made. >> yeah. depends on where the natural rate is, right? it plunged in 2008, steadily recovering, zero right now and headed north. so, you know, to my next point, we really don't know more today

than two somedays ago. they talked about the move, there's claritying and just get it over with, but, really, this is a moving target, and every quarter, we look at financial conditions, are they tightening, loosening, look at the rate hike, and in september, it gained weight, weighed it, in december, the market said go, the fed went. around march, we'll have the same conversation again, and then again in june because, ultimately, what matters is where is this path going? where is the rate cycle going to end? when? >> and, mike wharks if the wealth effect they were trying to do all along with this, what if it really did push groups up to multiples high in the stock market, art, even housing, people say that that is run up quite a bit. the bond market running up. what if they really were all

built on this and whether conditions go or not, just as you unwind that, some of that reverses. is it possible and tough to get out? >> certainly possible. i argue -- >> it's not likely? >> well, here's what i think the fed is, they set conditions that allowed the healing process to continue and progress, and, this afternoon, you talked about, okay, markets moved higher. we had extend -- >> higher markets justified. >> we had basically multiple expane expansi expansio expansion. >> it worked like it was supposed to, wealth effect goes up and rest of the economy catches up. do you think that too? or did we orchestrate over valued prices, and someone will pay the piper? >> yeah. i don't agree with the bear camp that thinks these are all bun, you know, fed-induced bubbles. a trailing fee of 18 is okay.

you look at high yield. the day before the fed meeting, the yield on the high yield index was 9%. hard to argue that's a bubble. i don't buy the bubble argument. i will agree that the ten year -- >> collapsed the week before. >> yeah. but, i mean, you know, the higher market's pricing the resession. those are not bubble valuations. i agree the ten-year yield is very low, and people think the fed manipulated the market. the reason it's low is because nominal gdp is weak, the two drivers for interest rates, and yields go up, and that's another conversation, but i -- >> i was going to say something you and mike spoke about right now is the idea there's price, valuation in the market here, and you mentioned pe. the one thing we have not talked about is the e part of the equation, which is earnings. wrapping up this quarter, a new one pretty soon, and i guess the real worry from the traders i speak to is earnings are not

growing enough this time around to actually justify valuations in the market. >> yeah. i agree with you that there is some risks in the risk-rewartd spectrum, certainly in the first half of next year. look at what happened in 2015, earnings are flat to down, earnings x energy are plus six. they had a great impact for last year or for the current year. if you look next year, estimates are 7%. that comes down, say it's 5%, but ex-energy, it's 7%. the market is not pricing in risk that oil prices don't come back quickly, which is a risk for 20 as mu16. >> in general, you cover something like that, what do you like to cover better, naughty or nice? >> i'm a naughty kind of guy.

>> i could feel it. you like the naughty. >> i like to see the positive, but -- >> i do too. >> andrew, naughty or nice? >> nice, come on. >> okay, fine. >> you didn't ask me. >> we know what you think. >> that's a dangerous question. >> i didn't want to put you in that position. all right, dom, thank you very much, thank you for being here, and it was great talking to you. when we come back, talking about the crazy case turing martin was vilified for jacking up the price of life saving drugs, and yesterday, busted on securities fraud charges that are unrelated, but maybe politically related too. our legal expert breaks down the case against the hedge fund bro. when we return, and reaction to the expected ban of oil exports. john hess is on the set, and at the top of the hour, democratic senator heidi heitkamp working

to overturn the export band. we have a lot coming up. don't miss it.

welcome back to "squawk box." latest read here, you know, 165. going lower as the morning progresses after a down session yesterday. a lot of it has to do with where oil is.

oil has been slumping again today as well over, you know, 1.5%, sounds like a lot, but it's 1.2%, 42 cents, close to seven year lows for crude. >> okay. on to the other big story talker of the morning, if you will, martin shkreli released on $5 million bond after being arrested by the fbi on charges of security fraud and wire fr fraud. he was under criticism for price gouging on vital drugs accused of running companies like a ponzi scheme, and we are outside of his apartment right now with more. good morning to you, meg. >> reporter: good morning, andrew. he was arrested here by the fbi yesterday morning. taken to federal court in brooklyn to be arraigned around 3:00 yesterday. now, of course, he is famous for raising the price of drugs, but that's not the charges. this has to do with a hedge fund and biotech company before he founded turing.

charged with seven counts of defrauding investors at his hedge fund and misappropriate $11 million from the company that distanced themselves from him. his travel is restricted. next court date is jan 20th. he faces a prison time of twept years. there was a statement late last night saying he's confident to be cleared of the charges. one section of the statement says he strongly denies the charges regarding the hedge fund entities, involving complex accounting matters that the eastern district of new york district attorney's office and sec famed to understand. in short, he says, he expected to be fully vindicated. tweeting last night, glad to be home, thanks for the support. more updates later today. back to you. >> we'll brake down the case to see what it means. the chair of securities

enforcement at white collar crime and government investigations practice, and he's former senior counsel for the sec's division enforce. good morning to you. >> morning. >> we appreciate the time trying to understand what happened here. just when you read the indictment, you say to yourself, this just seems like an utter fraud. anything else? >> utter fraud. stealing from one to pay the other. it was a preview to a madoff. it's not a ponzi scheme, but a set up of that. the allegations are clear. you know, he puts out information about performance. the funds tank, go to the fund

and the public company to take stock to make investors whole. you can see this foundation. >> there's been so much publicity around jacking up the price of drugs and how some people argued yesterday, though, clearly, the charges seem clear, allegedly seem clear, that maybe there was some political motivation to do this and to make it as public as the government did. >> i see it as totally unrelated. >> okay. >> an investigation such as this is not one that comes out because of the allegations involving the markup on the drug side. this is an investigation, and i found -- >> the reason it's on the front page is the role he had not in this situation per se, but in

the role with drug prices. >> 100%. that profile brought the story to the front page, otherwise it's a run of the mill, you know, false statement about assets under management, false statements to representatives. it would be somewhere in the back of the paper. it's a front page story because of the profile created for himself. what i'm saying is this investigation is one that will require, and the department of justice has to understand that it's the profile he created that caused this to be a front page story. >> right. >> the images you are seeing, you are seeing him with the hood on, but in front is the lawyer, and you are a lawyer. this is a fellow who worked with him. you are looking at, i believe, his name is evan. when you look at that, how often do you see the lawyer also get indicted, and what do you think his role was in all this? one of the defenses that he made

previously about all things taking place, look, i had outside counsel. >> andrew, excellent, excellent question. that is going to go to the heart of the case, but there is something call a crime fraud exception, and that is a lawyer cannot assist the client in perpetrating the fraud. that's why the department of justice and sec lay out the e-mails that show how the lawyer did that. there's been more and more cases recently where there are charges against lawyers, particularly in the small microcap space where the lawyers are actively involved in fraud, these are too close to the client. the client has an issue, and now the lawyer steps over the line, and in essence, enables him to actually resolve what appear to be resolving the problem, but in a fraupt way. what's going to happen is

there's going to be attempt to hide, but there's fraudulent conduct. despite belief he's going to be able to hide behind the lawyer, that's not going to happen here, or at least successfully. >> jacob, appreciate the perspective this morning. thank you. interesting to see if they diverge to come up with different stories against each other. >> i think they could. >> right. >> exactly. thank you, talk to you soon. we have a lot this morning, but before we tell you about that, but good morning, parker. my 1-year-old has been watching us this morning. she deserves a good morning. under investigation in israel for tax evasion. that's coming up. and it is national ugly sweater day. we want to see your ugly sweaters. tweet us the pictures. >> we'll have our own later. >> i'll win the game. >> if you think you win, by the

way, the ugliest sweater gets a signed ugly "squawk box" sweater. stick around. we'll be right back.

super model under investigation over a long running dispute whether she's a resident of israel for tax purposes. tax officials say she did not report celebrity benefits like free range rovers and cars she received in exchange for taking photos with the cars, and refaeli and her mother banned from traveling abroad for six months without permission from authorities. refaeli denies the disputes. here's -- this is why the daily news -- tried to sell itself for a dollar, no takers. that's the cover of the post. >> right. >> this is another showing republicans they don't like

because of gun control again. the -- i don't know how many in a row thags, but, i don't know, it's 20 out of 22 or something. that's why this one, going up. >> sales. >> alexander hamilton, right? >> money. >> if it was not for the jumble, i would ask them to cancel. i would at this point. that's why it's -- >> do the jumble. >> that's why i know there was no taker. good luck. congress set to vote today on a spending bill that lifts the 40-year-old ban on oil exports. we'll get a run down of what's in the bill and what is not, but i'll tell you, there are certain people on the right that do not like this bill. plus, reaction from john hess, ceo of the hess energy company. weird, same name. look at the price of oil. ♪

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welcome back to "squawk box" right here on cnbc, first in business worldwide, and among

stories at this hour, procter & gamble suing a rapidly growing competitor. they want dollar shave club, now with an 8% share of the u.s. razor and blade market to stop selling razors that they say infringe on its patents. a lot of people now saying, and there's a twitter thing going on of mark getting into it. i was e-mailing about it last night, that by suing these other guys, you say to yourself, is that razor as good as gilette? nobody thought that could happen. >> i don't understand. >> well, by suing -- >> i understand -- got that. >> you got that. >> thank, though. i know you have sophisticated ideas. but what patents? for the number of blades or the way the edge is? >> number of blades, edges, how they are lined up. >> patent litigation is fascinating. >> it is. >> how they are written by specialized lawyers. >> the coating. >> the coatings.

>> i think this is the bestiz g advertising. >> i never heard of it before. >> we had them on. >> we did. i think we should -- we were challenged to a test. what do you use? >> a shaving test on air. next week. >> if i'm at the gym, it's a plastic one. >> you use plastic? ouch. >> it's not as good as that -- i have one of those, not the latest, but there's four or five blades that's really good. i got to admit. i don't have the one with the ball or battery or that stuff. >> the fusion? >> you have that? >> i use the fusion and a brawn 7 electric. but i'm told the 9, which we might want to test too. >> you can't get a good shave with the 7 when there's a 9. >> this is like ads. >> you can't get decent eight minute abs. who? >> we're told to move on. >> a 7. okay. >> bringing in the razors next week. shave on the air. >> we have important things going on. congress set to vote today on a spending bill that averts a

government shut down and lifts the 40-year-old ban on oil exports, but the bill's passage is not a sure thing. we have a rundown of what's in the bill and what's giving lawmakers second thoughts, and what is, i would say, might be giving paul ryan second thoughts. he is getting hammered. what happened to the honeymoon? how long was it? >> hammered particularly on the right, joe, and, obviously, democrats also saying they don't necessarily support the bill nancy pelosi came out said she's not sure she has the votes to get this done on the democratic side, and they need those votes to pass this bill. here's what we expect with 1.1 trillion on the line today in terms of the schedule. the house votes at 9:15 a.m. the senate greeced the skids here to vote on an expedited basis after that, but there's no guarantees this passes because the democrats don't like, particularly, what's not in the bill. that is, no funding for puerto

rico in this bill. republicans don't like what's in it, which is hundreds of billions of dollars of new spending that they think is too much. obviously, what's in the bill, everything from ending an oil export ban to an entirely different cyber security bill added to the bill at the last minute. there's privacy advocates up in arms. other figures, 548 billion dollars in defense spending, $518 in nondefense spending, and ongoing combat operations, a lot in here. see if they get it done today, guys. >> depending how far right you go, rush limbaugh said, just disband the republican party. >> yeah. >> after agreeing to this give away or something. will speaker ryan get a pass on this? he got a couple passes already. he came out in a press conference this week saying, look, i don't like the process.

i don't like doing big catch-all bills with everything in them, but i was dealt the cards i was dealt with, and we are playing the best hand we can. he promises he'll go with regular order next year in bits and pieces throughout the year like they are supposed to do and not jam it in like this one is. >> is that a "today" show beard he's sporting, or she trying not to be recognized? do you know? >> you know, there's been a level of analysis of paul ryan's beard. he's the first speaker since the early 20th century to sport of beard. a lot of people say it's an alpha male thing. people say he's trying to get in with millennials who like beards. a lot of analysis of it. what paul ryan said is it's a hunting beard and simply left it on after going hunting over thanksgiving break and will shave it when he gets around to it. >> thank you. i knew you were the man to ask. >> all the beard details here. >> you do. thank you. we were talking about shaving,

so -- >> perfect. >> it's a theme. >> it's all seamless and always together, right? >> incredible theway it works. that's why we make the big bucks. thanks. the collapse in crude continuing today. wti fell below $35 for the first time since february in 2009 in natural gas, trading at levels not seen nearly 16 years, and here to talk about this as well as the lifting of oil ban exports. great to see you. >> great to be back. >> what we talked about today sort of changing my thinking on everything is it's just -- because i had not considered it, but saying, not just next year or the year after that maybe we're not back to 100, but even by the year 2030, oil might be at the highs. i started thinking, if we start replacing oil with what people would like to do with renewables and other somethings, that was a concept i had not considered. i thought we would have

hydrocarbons for a hundred years, still using them. we still need a car and airplanes and jets just do hydrocarbon. the guy who runs hess, i mean, is this a slowly dying business? >> absolutely not, joe. you know, while perception is in twenty years, andrew was in paris, there's optimism about renewables being able to fuel the world's energy. currently, renewables are 12% of the energy mix. look into the future, they may be 18% in the next 20 years. at least 70% of the world's energy is hydrocarbons or fossil fuels 20 years from now. i think hydrocarbons have a bright future, but we have to find a way as a world to accommodate the fact that we need 20% more energy in the next 20 years and at the same time we want to decrease our carbon footprint. it's a big challenge for business and for government. >> yeah, maybe, but just in

terms of using hydrocarbons, if that's true, 20% more demand, when you see 34, again, when did you think we would bottom? bottom at 60? >> absolutely. >> when you see 34, how do you explain that to yourself? what do you think? >> we're in a lower for longer environment. there's three head winds that are currently weighing on oil price. the first is opec. there was a december 4th meeting, and opec decided to do nothing. in the pastings they rebalanced the market led by saudi arabia, and a year ago thanksgiving, let the market rebalance and do what if needs to do to get back in balance with demand. it's perpetuating the glut. opec this year is producing a million barrels a day more than a year ago. >> before pique oil died sort of at the same time, we heard that saudis were just barely able, these are all ageing properties

that they got over there. they are not going to replace them or get more out. demand has not changed. it's maybe the increase slowed down. what the heck happened to -- fracking technology? >> yeah. shale oil -- >> horizontal punish. >> fracking in oil shale production is 4 million barrels day. >> that changes dynamics that much? >> no, not really. >> what else? >> incrementally what shale did was speak for world demand growth the last three years, about a million barrels a day increase in shale, and that -- it matched. it matched. key point here is demand was increasing, but another thing on price right now is the weather. the weather this year is 20% warmer than normal. >> that explains the natural gas. >> yes. but it's heating fuels like heating oil, and then last but not least, the market is still very concerned about iran coming back in. once they subtle with the western powers, that allows

3,000 barrels coming back. >> overhang? >> but uncertainty. people will be concerned. >> weather on the east coast, it's -- >> california. >> it's a global -- >> joe, the real point here is this low price of dl 37. >> 34. >> you didn't look at -- >> brent's coming down. >> they've both come down, down since the meeting for the reasons i mentioned. if you look going forward, the prices in sustainable -- look at the downturns, and we're in cyclical, longer term for investment, there's supply and demand all the time, but 1998, 1986 as well as 2009, we've been through this. >> how is the oil export ban playing into this, john? that's the news. we don't have much time. weigh in on that. what's that do? >> well, it is the one bright spot in lower oil prices because it's going to be very good for

the united states. it is boosting growth, increasing investment in energy, rather than other countries, there's incentive to put dollars here. it's going to create jobs as oil prices are better, but also besides economics, there's another benefit, called national security. by allowing us as the number one oil and gas producer in the world to put our oil in the market place, it is going to enhance energy security. it's also going to stabilize markets. people don't realize, you know, people are very, very short term. it's a long term business. there's only 2% excess capacity in the world. we have a glut in the market, but if you have a supply disruption in the middle east or russia, for whatever reasons may be, by us being allowed to put our oil on the market, we're going to be a stabilizing force for the years to come. >> 2030, not guessing $pennsylvania? >> absolutely not. i say by the end of next year, i think the price will move up as

supply growth starts to retard, demand goes up, the market draws on inventories, and you look at $60. >> importing more after we start exporting. does that make sense? >> no. makes no sense whatsoever. >> i saw that. i don't know. a fortune thing, you know. they have having trouble too, right? trying to -- right? i mean, all the inflammatory headlines. >> you think all print publications have trouble. >> they are. crazy headline, and then you go, wow, i have to read that, and them it's not true. >> thank you. the music is now playing. >> happy holidays. >> not for you. >> could be. >> hold on, don't leave yet. >> when we return, wait is over, the force awakens is out, and the early ticket sales numbers are coming in. we have the details. also, robert frank will unveil some of the new merchandise for superrich star wars fanatics. "squawk box" will be right back.

♪ the excitement continues to build, "star wars" opens today in theaters across the country. revival of the franchise sparks a new wave of merchandising. robert frank sheer with high end collectibles with the more affluent fanatics, but, first, let's get to julia in los angeles and she has an update on the ticket sales so far. julia, how high can you count? >> reporter: well, becky, we're at a movie theater in hollywood, and it's been busy all night long with screenings beginning about every 15 minutes since 7:00 p.m. last night. we are waiting for the numbers, but internationally, grossing $14 million in the first day.

star wars set an all-time record for fandango selling more in presales than its prior record holder sold in its entire theatrical run. analysts say the force awakens should have no problem grossing $215 million opening weekend, an all-time record, and goldman sachs issued a note this morning predicting the film is the third biggest performer of all time with a $1.95 billion growth worldwide. the reviews have been positive, and fans agree. >> i got here at 1:00 a.m., theater packed, and when the logo said "star wars" everyone lost it, cheered, a great experience. >> i was surprised, but i think they did a really fantastic job on this for it being disney, a really good job. >> reporter: security at theaters across the country is understandably tight with a sign that asks people not to bring in

props or wear masks. last night at a theater near here in los angeles at the grove, it was a vak waited because someone pulled the fire alarm, but it was a false alarm. now, we expect theaters, becky, to be packed all day long and packed through the weekend. becky, i don't know if you'll get andrew and joe to head out and see the movie with you this weekend. >> i don't know about this weekend, but i have hope for both of them. >> i looked, by the way, oddly enough, tickets available for tonight. >> tonight. >> yes. i was thinking of going tonight. should i be surprised that tickets are available? is that a bad sign? >> no. because theaters know it's not -- it means theaters responded to demand. one of the advantage for theaters selling tickets over a month in advance is they see the demand and keep adding showing. fandango says there's millions of tickets available because theaters pull other films to add more and more "star wars" showings. here i have the showing times

behind me, and there's 13 theaters every single one of them is showing star wars, and right now, it's not even 5:00 a.m. they are committed to every showing today being "star wars," so theaters just add more. >> thank you. back to the big bucks behind the merchandise. a california company bets you pay thousands for this "star wars" watch that robert frank is holding. more on the details on the high i understand e collectibles. >> collectibles first. i wish i never took my toys out of the box because i could have sold them for a lot of money including, check it out, luke skywalker figure, 1978, a double telescoping light saber, rare, apparently, sold for $25,000. >> what? >> that's cheap compared to the tiny model used in the opening credits, the rebel blockade

runn runner, selling for $450,000. >> that's from the movie? >> the one used, looks huge in the movie. >> you can tell. >> why joe was not a fan. >> yes. >> the reason this is happening, we have all gen x's who have a lot of wealth now willing to pay up for memories. >> warhol cost $75 million now, pails in comparison, but it's recognizable by the public more than let's say if you got a renaissance painter, you know, that just still worth tens of millions of dollars. i mean, everyone remembers "star wars" and this particular scene. >> even the new money has new products to choose from. the star wars watch. this thing right here made by devan, california watch builder, belts, mechanical power, and a case inspired by vader.

there's coating, logo on the back, the fighter jet wings. >> how much is that? >> this goes for $28,000, making 500, but they have preorders for 350 of these. >> wow. >> those who like droids with bling, this is 880 diamonds totally 18 karata valued at $135,000. go on line at k.com and bidding proceeds go to charity. >> how many made? >> just one. >> just one. >> just one. >> that's it? >> just one. they got more affordable products they are doing with "star wars -- ". >> can i touch it? >> i don't know if it's a good necklace or just -- i guess just set it on the kids' room. right? >> no. >> the look on joe's face right

now. it's pricely. priceless. >> little becky. so cute. >> thank you, guys. >> sure, go ahead. >> when we return, stocks to watch at the open, and, later, actor george starring in a broadway musical inspired by his childhood experience. the former actor joins us on set at 8:40 eastern time. as we mentioned, it is ugly sweater day at cnbc. we want to see your sweaters. tweet us pictures, and the best wins this signed ugly squauk sweater. i hope to went whole contest. when you're not confident your company's data is secure, the possibility of a breach can quickly become the only thing you think about. that's where at&t can help. at at&t we monitor our network traffic

so we can see things others can't. mitigating risks across your business. leaving you free to focus on what matters most.

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movie geeks. sports freaks. x1 from xfinity will change the way you experience tv. looking at stocks to watch this morning. blackberry reported a loss of 3 cents a share, smaller than the 14 cents analysts expected. revenue above estimates on growth in blackberry's software business surprisingly. also, under armor rated as a new buy in a new coverage area with the firm pointing to high brand awareness and the sports apparel makers presence market. more news on software provider red hat reportedly quarterly profit of 48 cents a share, one penny above estimates and

boosted guidance for the fiscal year ending in february. microsoft upgraded to sell. the stock disconnected from lower earnings estimate and the street is giving new positive emphasis to the company's cloud transition. >> okay. you might be able to get "star wars" tickets, but you know what tickets you can't get? >> what's that? >> you didn't see this? adele? >> yes. sol out yesterday in an hour. >> i thought that you could hook it up. >> you can buy them, but pay the price. >> yeah. the quickness they sold out -- >> coming up, senator heitkamp talks about the new exporting of oil.

backing the call for 2016 at the same time washington agreeing to lift the nation's 40-year-old ban on exports. democratic senator heitkamp here on the budget and more. >> breakfast and brunch and dinner, shares up 20% since announcing the all-daybreak fast menu, others hopping on the band wagon? stick around to find out. >> out of the world conversation

with gorge takei, living long and prospering as the final hour of "squawk box" rolls on. ♪ live from the most powerful city in the world, new york. this is "squawk box." >> i'm joe with andrew, and becky, and 90 minutes from the opening bell. futures right now are about where they were, a little better, down more than zoo for some of the morning, and now down 142, extending yesterday's losses, europe is weaker as well. s&p's down 19, and nasdaq down 32. that's what's happening in europe. that's worsened. not as bad earlier, but maybe

europe responding to the 200 plus selloff from yesterday. the day after the fed hike when we had the initial response which was positive in the equity markets, and now we're -- two straight down days after a bad week last week. santa claus is missing in action for his rally as we head into christmas week next week. >> let's talk about other stories investors are talking about this morning. the latest actions by the bank of japan or lack thereof among the negative factors weighing on the markets today. the bank did not extend the asset purchase program as many thought they would. also, this morning, all-state tested use of drones to evaluate property claims. saying the drones would be used in cases where access to properties is restricted after disasters. you can see a utility function of the drones. also, las vegas says the slump in the key gaming market bottomed and should rebound next year. gaming revenue declined for the past 18 straight months.

amazon could be leasing at least 20 cargo planes with the goal of building its own air logistics air operations in the united states. seattle times reports amazon is in talks with boeing to release jets with the goal of creating a department that could potentially replace a lot of the work outsourced to ups, fedex and united states postal service, lowering risk of shipment delays, a problem in holiday seasons previous. andrew, share holders waiting for amazon to start going from revenue and market shane gains to profit, right? can you imagine building your own air delivery system with boeing jets? i mean, is that a good use? don't you like farming things out to other people who do it? >> not if you can do it better yourself and ultimately cheaper. >> wow. >> think of the voteup. >> all the time or just during the holiday season. >> it's a buy-in business. they have so much -- >> any way to bite off more than

they can chew? nay do everything. >> by the way, they made errors, started the fire phone, tried things that do not work. >> the stuff they've done in their own business in terms -- >> they keep spending money on building out and expanding. what scares me, i see all the, you know, big cargo planes with thousands of drones splitting from the cargo planes before they land and coming down, just, like -- a frightening future, amazon, oh, all thursday -- >> i don't like drone delivery. >> they don't land the cargo planes and send out drones from the air. >> from the air. >> thousands of them delivering packag packages. >> like "independence day." >> yes. or "terminator." >> so you don't -- >> i don't like the drones, but this makes sense. >> really? >> leasing 20 jets, amazon delivery. >> good at logistics. >> pause it's a volume based business. most companies don't have the volume for this.

>> absolutely positively has to be there. just give it to them. >> fedex. >> yes, anyway, sorry. >> a few other stocks moving this morning, lenar earned 1.21 a share, 9 cents better than expected. the dollar value of new orders up 20%. darden up 12 cents, and parent of olive garden and chaps raised full year forecast as well as quarterly dividend. stock up 3% on a day we have a down market. goldman sachs standing by the prediction of $20 a barrel oil because of the worsening of weak fundamentals after opec held back on cutting production. if oil prices fall below that level, companies have to make cuts in order to avert losses. oil prices fell 50% in the last 18 months because of burgeoning energy supply and demand

slowing. this morning, you are looking at weaker wti once again. yesterday down by 2%. fell lowe $35 a barrel, and right now at $34.78. >> a little buying coming in that could help the equity market. >> monday. >> okay. up above $35 again probably. the 40-year-old oil export ban expected to be repealed today. joining us, the congressional member pushing for the ban to be lifted. senator heidi heitkamp. good morning, senator. >> good morning. >> i thought it was enough for republicans to get this through with the help from democrats. right now, what are the chances that this goes through. there's carpet on the right, speaker ryan, the like, and i thought initially it was a fly through.

what do you think now? it happens? >> i think it's going to happen, and i think it's interesting because the budget limits were set in budget a month ago. they say, woah k look at the spending, say that decision was made. that's why speaker ryan says this is a hand i was dealt. doing the best we can with it. i think that there's got to be some level of, you know, kind of honeymoon period for him. i think this gets done today. if not, you know, we'll be here past christmas. >> and this is something -- how long you been trying to get this done? why does it -- why was it a priority for you? >> well, obviously, north dakota's the number two biggest producer of crude oil in the country. we're also -- we don't have a mature infrastructure, so we have a lot of transportation deductions. we produce the best crude oil in the world, but we were not getting the price for it. my evaluation of that is, look, dwoept get the price because we don't have a market.

we can't find our market. before we saw this very deep price decline, this always concerns me because i believe in free trade. i believe commodities should find their market, and so e we started working on this, part on your program a long time ago, and i was one of the few people here in town thinking we could get it done this year. we got it done because it's the right policy for america. >> what could it mean for -- i mean, it's bittersweet, i guess, victory at $34, would have been nice to export at $100 or $90, right, from north dakota? >> one of the problems in town is we're a short term thinking nation. for me, this was never about what this meant for the short term oil market. it's going to go up. it's going to go down. it's about what woer going to do to produce this commodity, and basically allow for export of this commodity long term. one thing that it's going to do is keep development of this

resource in this country on the books in many board rooms across the country. >> senator, is it impanel that this causes more exports? i don't know what the rationale for thinking was, but i've seen people warn this means that the united states imports more oil if we export our domestic reserves. is there any reason to think that? >> no. i mean, i think that when we -- you know, just look at the rest of the commodity markets, and you've heard me say this. a lot of people like low corn prices who, you know, run feed lot, doesn't mean we stop exporting corn. the same is true here, and we believe this will equalize the market that what this will do is have no effect, if not a downward effect on gasoline prices, and so the effects, the economic negative effects of exports have been greatly kp ll exaggerated because they have been a beard for people not

wanting to do anything in the oil industry. we move forward. i think this is good for national security. it's good for energy security. it's good for our allies. at the end of the day, it's a good thing because we're a country that believes in free trade. >> all right. it does mean a lot of hydrocarbons coming out of the ground. i know you've seen the president getting back from paris, a lot of hoopla about climate deems. as a democrat, do you stand behind secretary kerry, president obama saying that that's a much bigger problem than this because of hydrocarbons than terrorism? >> well, one of the things is you can't just say "democrats" because there's a whole lot of thinking -- >> i said it nicely, not like a democrats' congress, not the way it's used a lot of times it can be used. >> you know, i think that today the most immediate threat we have is isis, and that the

destabilization certainly in the middle east and everybody's ignoring western africa. >> right. >> or eastern africa, which i think we should be deeply concerned about too. >> right. >> but let's face it, we know that based on everything that we saw, there's going to be a challenge in terms of industries, the fossil fuel industry in meeting carbon challenges, and, you know, this is not just my only issue. i've been working very closely with the coal industry on making sure that we have carbon capture, sequestering in the world, we do it in north dakota, and there's ways to continue to use the resources and meet concerns that people have about them. >> okay. i can't help myself. did you see the second season of "fargo," because you -- i mean, you could be a consultant, you know, with -- do you say you betcha? >> oh, yeah. oh, you know, this is your christmas present. >> that's amazing. >> yeah. >> that's amazing.

>> uh-huh. >> did you watch that? so violent, but it was great. >> yeah, of course, you know, number one, and i told you this before, fargo was not about fargo, but minnesota. >> and laverne, minnesota, but they go back an forth. >> great scenes, though. great scenes. >> it was. >> looked like a barren blizz d blizzard. >> no, it's stunningly beautiful. >> have to have the eye for it. >> thank you, take care. >> you bet ya. martin arrested yesterday in what u.s. prosecutors say it a ponzi-like scheme. meg is joining us this morning from outside of martin shkreli's apartment. good morning. >> reporter: that's right, arrested and arraigned yesterday in federal court in brooklyn, out on $5 million bail. in a statement last night, a representative of his said he's confident to be cleared of all

charges. in the statement, interestingly taking issue with the government's claim of the ponzi-like scheme that he failed as an investor, saying, quote, victims do not make money, but yet they enjoyed strong results saying he's confident he'll be vindicated here, but the indictment yesterday points to a detailed picture of how he lied to investors about the track record, investment return, and used his old company as, quote, the personal piggy bank. this is a company he ran before turing, getting attention raising the price of a drug, and he was sued over the summer for $65 million over very similar claims to the government, and the company said in a statement yesterday a new chapter began the day the company replaced martin shkreli's, and we'll be here all day with updates. back to you. >> thank you. when we return, will the post-fed bashing continue in today's trading session?

setting up for what could be a volatile day on the final wit witching friday of the year. black rock joining us next to talk about it. back in a moment. ashley bryant, you are a teacher of small children. that's right. i have read it is the hardest job in the world. that's why i'm here. can you... i can offer advice from the accumulated knowledge of other educators... that's wonderful but... i can tailor a curriculum for each student by cross-referencing aptitude, development, geography... sorry to interrupt. but i just have one question: how do i keep them quiet? (pause) watson? there is no known solution.

welcome back to "squawk box," futures this morning on what's called quadruple witching friday. looking at a down morning with the dow looking to open off 125 points, and nasdaq down as well, 25 points off, and s&p 500 down too at 117. for more, the chief investment strategist at blackrock. the question of the morning, of course, is whether we're in for more volatility and to the degree we have this conversation in the 6:00 hour. fed get it right, but maybe just for a day? >> well, the fed got it right, long past time to normalize rates, but, you know, again, keeping the market happy is not part of the fed's mandate. the problem is we've been in an environment of unusually low vehicletity for a long time, and it's not that surprising that volatility is reverting back to something closer to normal.

>> and -- but in terms of how much volatility you expect, then, over the next year, it looks like what? >> it looks like this level, if not higher. there's things going on, one of which, again, you are removing this factor that had been suppressing volatility for so long. ultra loose monetary, and you see the credit cycle is further along, and the backup we've seen in spreads is something that typically happens alongside higher volatility. finally, you know, joe, this is another year of disappointing global growth, another year of global disappointing u.s. growth. generally, economic expectations come down, that's also associated with higher volatilities, so, unfortunatelily, i think this is here to stay. >> your sense, though, over 12 months, beyond volatility issue of where we are headed economically? >> i think economically we're doing okay. measures with some indication how the economy's likely to do

in six to nine months, they say it's a decent, not a great economy. we expect firming in the household sector, continuing to struggle, and i question forecasts going out one to two years because i have not found an indicator doing a good job of telling you what the economy's looking like in 18 months, but the next six to nine, it's good shape. >> the high yield market says what right now? >> a couple things, we see on the screens, the energy, natural resource sector is struggling, 15% of the high yield market, but beyond that, it's telling you that financial conditions are not going to be as accommodative as they have been in the last three to four years. >> expect a blow up? >> no, we are not expecting a blowup. you see the market, parts of it, anything related to energy and natural resources come under pressure, but we're not expecting a blow up in high yields. >> you said it with a straight face that keeping the markets happier, not one of the feds' mandates. you heard the irony dripping in that statement, didn't you,

russ? i mean, you're not -- you might have been born at night, but not last night, was it? >> it's a factually true statement. go through, look at the mandate, keep the market happy is to the there. >> really? >> obviously -- >> so the wealth effect that they try to engender from propping up stock prices for five years of qe was not about keeping markets happy and wimping out with the taper tantrum? >> it was about a mechanism that in the u.s. has been less effective in europe has helped to provide some lift to the economy. now, we can debate its effectiveness. some argue not as effective as they thought, but, look, reality is that's ending, and when was that was part of the plan or just a happy side effect, the ability to drive multiples higher, compress spreads is a lot less effective in 2016 than in 2013. >> had ten to 12 mandates at one point we think if you think about the dollar and everything else. anyway, i thought --

>> dollar is a complication. dollar is a complication. >> okay. thank you, russ, appreciate it very much. look forward to seeing you again. in the meantime, big exceptions for the force awakens this upcoming weekend. thousands flocking to the theater last night. details ahead. and then "star wars" or "star trek," actor and social media star, george takei is here. breakfast or brunch, whatever you want, mcdonald's found something investors have been craving. a closer look at the recipe for success. squawk returns in a moment. i want a pancake.

♪ >> force brings thousands of people to theaters across the nation last night. latest installment of the "star wars" saga breaking box office records this weekend. advanced ticket sales surpassed the $100 million mark, and

online ticket seller reports the film broke a record for the most tickets sold for any film in the entire theater run. fans lucky enough to see the thursday midnight showing of the movie are reacting to the much anticipated film. >> it was an emotional roller coaster, like, really, at the edge of the seat the whole time. >> aspects are, like, omg, what the heck just happened? >> like, you think -- >> is she crying? remarkle. >> i'm excite the. >> it is exciting. next time you go to the movies, you may not have to wait in line for popcorn. they are testing technology that allows moviegoers to preorder and prepay for the food and drinks via apps on smart phones. collect the items in a pickup station. i like the idea. i can't stand lines. this is brilliant. >> you got to put -- get the bucket and then put half in and them give it to you -- >> not the butter, no. >> yeah, you do. >> no.

>> the salt and butter, and then shake it up. >> i want the app. >> you don't have butter halfway down. you don't care? >> put that in a special order, a special request. >> no way you get 4,000 calories if you don't do butter halfway down. >> upside. >> if you have more shopping, today is a good day to buy online. free shipping day, more than 900 mother chapters taking part in item that is will reportedly arrive by christmas eve. there's also no minimum purchase required. to see who is participates, go to freeshiningday.com. fr freeshippingday.com. >> i have prime. >> the rams beat the buccaneers in thursday night football of the today is a key vote in st. louis to build the stadium, and, potentially, the rams go back to l.a. l.a. rams.

plan was approved this week. three teams threaten to move to l.a., threatening. because the traffic. including the rams. moving to l.a. if you don't watch out. owners meet next month to decide if the two teams can relocate. a st. louis stadium task force says if the rams move, the new stadium could lure another team. the stadium sits alongside the mississippi river. spoiled jameis' night last night. coming up, breakfast success. mcdonald's stocks soaring 23% since september with new highs. all because you can get -- that's enough. i would say. could pancakes be the answer? we discuss it next. with passion. i built my bs

but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet?

welcome back to "squawk box," stocks to watch ahead of friday's session, carmax sales

slumping, quarterly profit of 63 cents a share, 5 cents below estimate. they had a challenging quarter and spent more on advertising. smaller than expected losses, and revenue coming in well below estimates. blackberry benefitted in front of improved software business with other factors, and out performed, coverage from wells fargo, calling kroger a large capital and the supermarket operator is doing well in being innovative in a high le competitive industry. >> eating competitors for lunch. the fast food giant up 20%. they launched extended breakfast back in september while other traditional breakfast services like ihop, they are down double digits with their stock. unlimited egg mcmuff fips bringing back to the golden arches, one-third of lunchtime barak fast food diners have not been to mcdonalds in the

previous months, and we have we have our senior research analyst, when did don thompson leave? do you remember, bob? >> i want to say late last year. remember easter brook came on in march, so i suspect late last year, early this year. >> i suspect, bob, as i remember, it was, like, lost in the wilderness. more apple slices and yogurt and kael chips, what do we do? the guy made a movie. gained 800 pounds in a week after eating our stuff, awful, preservativ preservatives. never coming back, meat, global warming, everything bad for mcdonalds. how did they turn around? >> it's online only, but i'll get you a link. this turn around is potentially temporary.

i think people are intrigued by it. wanted breakfast for a long time. >> stock don't act like that because -- >> it's them trying to make a big move, but i don't know that it helps them. >> stocks are not real fundamental in the future, but they don't mess around. >> stocks react to mcdonald's trying to make the move and listening to the customers. >> like andrew. >> i think that as i said before, this management team gets it. they will not stray outside the credibility they have with consumers. i think the past management team did that, and it failed miserab miserably. they will move within core competency and consumers allowing them is a smart way to do it. first is convenience, remember,

and it's breakfast. i think incrementally with breakfast, those slowly try to broaden the menu offerings at the breakfast day park and broaden throughout the day, there's a filet that does not fit. >> the mcribs put in a mold, and i don't know what part of the animal that it was, but z-- so people said a year ago, get service back to what it was, bathrooms clean, and keep the franchisees happy, don't reinvent the wheel. i don't know that i believed it, but so far, stick in the sausage and egg mcmuffin at three in the afternoon, and stocks are at a new high in a market that's gone nowhere. >> to be fair, joe, they made changes with the menu, you know, for example, simplistically, focus on qse. we talked about that. focus on adding -- >> butter? >> english muffins. little things make all the

difference. >> right. how much have they benefitted by problems at chipotle -- >> that's recently, though. >> i know, i know. it's interesting because everyone was moving towards, you know, fresh and local, and now there's local e.coli and neuroviruses. >> you'll see issues with the competition whether it's the casual space or chipotle and burger chains focusing on quality like shake shack and five guys. that's an issue for them, but i think it's a coy outbreak that might help them in the short term. >> and your sense -- >> go ahead. >> the other thing i was going to say is remember according to consumer reports and american satisfaction index, they have the worst burgers in the industry, and consumers, that's from consumers in, you know, who have surveyed, said, and come back. you know, i think the management

team knows where they have credibility and where they do not, and i don't think we'll see them jump into a premium burger soon. >> burger's best fries. >> pardon me? >> worst burger, best fries. >> fries have 19 agreements in them, but they taste delicious. >> no ketchup, but you need salt. >> i need a burger right now. >> i'm not sure. nobody's talking about burger king. >> they didn't get the fries right. they tried chicken finger fries, like, i don't know. thank you. >> thank you. >> thank you. >> and, bob, you going to mcdonald's now? >> for breakfast. i was just there a few minutes ago. the place was packed. >> i don't know whether he's kidding or not. >> i'm serious. >> i believe him. now i'm jealous. thank you. >> thanks, guys. when we return, actor, social media star, and human rights activist, george takei talks about the new broadway play, "allegiance" talking about

trump and, of course, "star trek," this is a new video posted inviting the donald to his show saving him a seat. close to a million people saw it overnight, george will be here when "squawk box" comes right back.

welcome back, a fan favorite in the cast of the original "star trek" tv series, now in his 70s, he's increasie inine i

activism and launching new products. the star is in a new musical inspired by his life experiences. also, lorenzo, the producer of "allegiance," the new show on broadway, and, gentlemen, thank you for being here. >> great to be here. >> we have so much to talk about, but why are you here with "allegiance," and, george, describe what happened in your life to bring this play about. i spent my childhood, duration of the second world war behind barbed wire fences. ives too young to understand that, but as a teenager i learned about my parents' experience, and it's been my mission in life to make this story known because it's such an important part of the american history. i'm always shocked by the number of people that i consider well informed who are agast when i talk about my childhood and can't believe this happened in the united states to american

citizens who happen to be of japanese ancestry. i went around making speeches, founded a museum, but to be able to tell this story in the form of my personal passion, musical theater, on the broadway stage has been a dream fulfilled. >> you were 5 years old? >> 5 years old. >> moved to where, a camp in arkansas? >> well, we were first taken to the horse stables of a racetrack because the camps were being built. >> entournament camps? >> yes. when i say "camp," they think it's summer camp. stables were temporary housing, called assembly centers, and from there, we were taken to the swamps of arkansas, and then the loyalty questionnaire came down, and because my parents answered it in the way they did with two nos, we were transferred to what

was called a segregation camp in northern california. so, essentially two camps, but an assembly center and a horse stable before that. >> lorenzo, how do you come into the picture? >> you know, sometimes amazing people come in your life and amazing stories change your life completely, and that's what happened to me. i met george completely randomly one evening in a theater. we were just there to actually see a show, and made small talk. george takei, who would not? >> yeah. >> i happened, he was moved at the show we were seeing that evening, and had. ed to tell us the story of his experience and how it changed his life profoundly, and what kind of different outlook on his life this credited, and we were touched. we were inspired, and we thought this is a story that not only no one has ever really heard about, but that it's truly an american story that celebrates heros in a

way that many stories have not. we felt like this is something that ought to be told and ought to be told in a way that moves and elevates the sentiment and the emotions, and so we started seven and a half years ago working on the idea of bringing the story to the biggest stage in the world in the broadway stage. >> you founded a company that was from microsoft? >> correct. yeah, no, i'm sort of a pree cletic background, always have been an entrepreneur, and i think that most compelling and important skills any entrepreneur can have is to be a fantastic story teller because you are always telling a story from the moment you raise money to the moment you hire people to the moment you convince the market that whatever you're doing is valuable and important. you know, this was a particularly perfect way of telling a story by telling a story. so we basically said, look, this is something that little could

we possibly how important the story would be for today's climate, that this was seven and a half years ago, but i felt that it was relevant then because of the recent memories of the events of 9/11 and sort of the ways in which it resinated with that, and then seven years forward it's still relevant, but, yeah, i was not. i was not. we decided to take on this adventure and work really hard for many years and took the show first, you know, through development stages in san diego with the world premier, and finally, this year, premiering on broadway. >> george, what do you think when you hear the antimuslim sentiment around today? >> chilling. that is precisely what my parents heard when we were incarcerated. american citizens, simply because we happen to look like the people that bombed pearl harbor, and that kind of sound is being made now, and people

that are making those sounds, playing on fear and ignorism are getting chilly support. he's number one, domtd trump is number one in the republican polls, and that is frightening, but at the same time, we have a different america. i can tell my story, my american story. we've invited donald trump to come to see "allegiance" because he can learn something. he says he was not there, and he can't quite make up the mind about the camps. live vicariously what we present on stage thee at try trickily, go there, experience that. i was there. he can share that experience. hopefully learn from it. you know, the radical muslims are a small fraction of the muslim population. it's that base. arlington cemetery, headstones

have muslim symbols on them. muslims have fought and died for this country. he has to understand that. there are patriotic muslims that are the majority of the majority of the muslims. they are a peace loving people. the same way that timothy mcveigh, classic american boy next door does not represent america. he's a small fraction. we have people like them. so he needs to see what is going to be the consequence of what he's proposing. come see "allegiance," be educated, and at the same time, be entertained, be enlightened, and be transformed. >> well, we have you here, we have to ask you about "star wars," and "star trek," and jj abrams is the one overriding presence in them. what do you think of jj abrams, "star trek" renewal brought out? >> i'm the only "star trek"

actor that crossed the bridge. i worked on "star wars" animated voiceover, and i met jj abrams. i got a phone call from his office asking to have breakfast with him. this was when he was casting the first jj abrams' version of "star trek", and i thought, oh, i heard leonard's doing a cameo. who knows. i went. he was a fascinating guy. full of ideas. energetic. driving. i was waiting for the word. what it was was, he said, i've been looking at a lot of actors to fill your role, and i wanted to find a japanese-american actor because you're japanese-american, and who i found that i would love to consider is japanese-americans, and i wanted to -- americans -- wanted to know what i thought of that, and i said, well, is he asian-american. he said, yes. i said, well, that's all that

matters, and i knew right there he didn't really understand "star trek" because gene's philosophy was the star ship enterprise is a metaphor for star ship earth, and the strength of the star ship was in its diversity coming together and working in concert as a team, and each one of us represented that diversity in the future. north american captain, a european engineer, an african woman as the communications officer, and the asian character was the helmsman, and he want us to represent sections of the globe, and that is the story i had to tell, that this was an asian, not a japanese, and the name sue itself conveys that. he wanted to find a pan-asian name. >> right. >> every asian surname -- >> when you went in and saw the presentation, long ago, and it's not -- life goes quick.

you remember before "star trek" started. >> oh, yes. [ laughter ] >> so, you know, i need a paycheck, did you know you would end up -- everybody icon, seriously, icon. >> not the icon part, but i knew it was a ground breaking show. >> you did? >> to have that kind of vision in a time america was in turmoil, on tv. >> and then we got to get to shatner too. i mean, what was up, like, he's been here. ego, i love him, and he's got -- he couldn't have played anyone but the captain, right? >> he revels in it. the center seat. surrounded by all the other people. >> those, you know, in the over acting did not matter. it was better. he had to do it that way. >> called for a bigger than life character, and he filled it. >> i asked, did you want to hit him? working that close for so long every day? >> no, i'm not that kind of guy,

but maybe hit on him. [ laughter ] >> different star, different ego, i wanted to ask about a friend of yours, you're the voice of him, howard stern, what do you think of the deal he made? >> fantastic, isn't it? i kind of thought -- he's the guy who has a sense of responsibility. there are a lot of just plain jobs involved. he's an industry. he's also a savvy guy. >> do you think for a second he was not going to do the deal? >> well, i did have my doubts. he has a lot of options. one of them being retirement. you know? >> how long does he do it for? >> he enjoys what he does, rechrech revels in it, and i think in some form throughout life. he's not the kind of guy who retires. >> well, george, lorenzo, thank you so much, and, again, remind people "allegiance" is on broadway, great time to check it out, and thank you for coming.

>> happy holidays. >> and to you. when we return, jim cramer is at the new york stock exchange with the futures. right now, i think oil might have been getting better because -- oh, no. still triple digits. for better -- no, still triple digits. for a while they were double digits. let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim? for all the confidence you need. td ameritrade. you got this.

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get down to the new york stock exchange, jim cramer joining us now. simple i think again, jim, oil down to 35. it's tough to get headway. you said earlier today a down open may not be so bad if oil were to recover, then we would be okay. >> it's friday, holiday season coming up. when the market is up, futures were up at one point when -- relatively when oil was starting to roll over. then they came to the conclusion that if oil is down again, if oil goes to 33, if oil does the goalman cagoldman call, oil is down again. there's so much more than just the 7% energy in the s&p. there's ton of distribution companies, pipeline companies, they're all falling apart. whether they should fall apart or not is less important than the fact that they are. and individuals who are in these

stocks are freaking out. people feel which distribution is going to be cut next? we don't know. it's taken over the market rather than say red hat or honeywell or ge. so, it's just individual stocks that are doing well. darden doesn't really matter. right now all that matters is oil, whether we think that's right or not. >> yeah. i feel like hanging out at mcdonald's all morning. whatever they give me i'd eat. stock at new highs. >> that's what they want right now. still an inexpensive stock versus other companies. they're doing well. the dollar is not soaring the way people thought. people want to rally around companies that may do better with gasoline down. that's why darden did well, why mcdonald's did well. we have to understand this market is locked into the grips and even an amazon, which actually does better when oil goes down, even amazon gets taken down by oil. remember how stupid it is, accept it, understand it and

recognize. >> jim, we'll see you in about five minutes. when we come back, it has been a long year at the office, today is the day you can break out of your monotonous work routine and celebrate the holiday season. we're talking national ugly sweater day. we'll share some of your pictures and reveal our ugly sweaters after the break.

so what's your news? i got a job! i'll be programming at ge. oh i got a job too, at zazzies. (friends gasp) the app where you put fruit hats on animals? i love that! guys, i'll be writing code that helps machines communicate. (interrupting) i just zazzied you. (phone vibrates) look at it! (friends giggle) i can do dogs, hamsters, guinea pigs... you name it. i'm going to transform the way the world works. (proudly) i programmed that hat. and i can do casaba melons. i'll be helping turbines power cities. i put a turbine on a cat. (friends ooh and ahh) i can make hospitals run more efficiently... this isn't a competition!

welcome back. we're celebrating national ugly sweater day. all morning we've been asking you to send in photos of your ugly sweaters, now it's time to pick a winner. here's some of the ones that came in. those are cute. >> too cute. >> that's ugly. >> that's a rutgers sweater. >> cute. >> cute picture. >> that's pretty ugly. >> yeah, that's ugly. >> eh. >> those are ugly. >> ugly. >> too cute. >> way too cute. >> that's ugly. that's legit ugly. >> yeah. >> that's -- that's tough. the elf thing -- >> that's cute. >> cute dog. >> okay. cute family with some ugly sweaters. that's good. are we looping at this point? >> i think we'll rolling back around. one jumped out at me. >> this one i think should be the winner.

this came in the mail two days ago from a hedge fund. it has a financial connection. this is kingsford capital management. there's supposed to be all sorts of things in here. there's a "house of cards" or something back here. >> it's deliberately ugly. >> deliberately ugly. connections to different financial things. there's a guide that came with it. i didn't know what do with it. >> i got one of those at home. that's ugly. >> this is going to the winner. >> this is signed. >> you have to show that. >> there's a ticker, too, which makes it ugly. this is pretty ugly. who is the winner? >> i know who i think? >> go for it. >> what about you, mr. grinch? >> there's an uglier one that we didn't show in that video. >> oh. >> you have a photo of this one? >> oh, we don't. >> okay. we have to vote. >> where? where is the winner? i know which one i think. that is the winner.

that's the ugliest by far. maids of milking. an utter. >> utters are gross. >> you're the big winner. >> you're close runner up. >> playing the grinch. >> you know what i get? >> no one gave me anything to wear. i would have wore one. >> every morning win a prize. >> happy holidays. >> we have to go. join us on monday. happy holidays. "squawk on the street" begins right now. good friday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. we put this historic week to bed today. futures paring some earlier losses. s&p has a chance to end in the green despite the carnage yesterday. japan and europe