>> i have grown-up kids who have significant others and are traveling and we wait around for them to show up. that's the entirety of our life. >> bob got a chance to be on sidewa squawk box squawk on the street is next. we are live from the new york stock exchange. carl and jim have the day off. let's look at futures as we set up for a shortened trading week.

this is typically an interesting trading week. you get some moves. the european markets were in the red last time i looked. london not open. boxing day, right? >> yes. boxing day. >> whatever that is. >> that's where you give the staff money. it's called a christmas box. >> thank you, that helped me. >> and the ten-year note yield. crude oil which has been such a key to the markets is down that's the biggest move down in a few weeks. >> we rallied strongly. >> rallied strong last week in wti and in brent. brent fall beg low ing below wt. >> amazon said it added 3 million prime members in just the week before christmas. >> amazon had a great week what about the other brick-and-mortar stores? where are all those return gift items going this year? >> potentially important story moving forward, valeant ceo is

taking medical leave. the stock is down 6% on that news. we'll have the latest. futures moving lower as we head into the final trading week of the year. crude oil down 3% following last week's rally. overnight in china, the shanghai composite falling 2.5% the biggest loss in a month hurt in part by weak industrial profit data. the nasdaq for the year is up 6.6%. that's the nasdaq composite. the nasdaq 100 has done better. the s&p 500 clings to positive territory, the dow industrials down 1.5%. but it was good week last week. the s&p surging 2.8%, partly because you had the rally on oil which was up almost 6%. this is an unusual end to the year. you could discuss where you are on valuations, people do continuously and rightly. but you had the cheered dynamics of year-end.

late fed decision, disappointment from the ecb, oil moving down rapidly last week, which made it difficult for a lot of people to put on risk and therefore for the so-called santa claus rally. >> don't let that rise in stocks last week, where the s&p finished up 3% fool you, december has been a tough month and it's been an unusual year as the "wall street journal" points out from the end of november, november 20th until christmas week which is usually a positive time for the market. this year is an anomaly, weighed down by the price of oil and these central bank decisions. it has been quite a stunning year for central bank surprises. going back to january, remember that, all the way up to december, where the european central banks disappointed in not delivering enough stimulus. the chinese central bank in august had a surprise devaluation of their currency.

>> and kabota in japan buying everything. >> clearly this post financial crisis era has been marred by being glued -- >> no longer. the front page of the financial times today, the majority of economists they surveyed in europe don't think the ecb will do more. that's why it's a different environment. that's why you don't have the assumption of liquidity supporting the market arguably. volatility the order of the day. >> this week very thin trading there are sometimes anomalies. a lot of times you get hedge fund managers who do go to work a couple days and giving opportuni opportunity. supposedly in a market like this where we are literally flat, let's call it now on the s&p, you would expect stock picking would win the day that does not appear to have been the case as

it extends to most of the hedge funds out there, with some exceptions. many of them down. one thing that is up is amazon. that stock up sharply over the course of the year. and overall. it's been a record holiday season. >> they put out selective information. >> they are very smart. they know we're starved for news on a day like this and put out this press release which is typically 12 pages long telling you all the things they sold, how many ways. but there were some important things for people who follow the company, namely they added 3 million members to amazon prime that was during the third week of december. they say demand for amazon devices, like the fire tablet, doubled from last season. nearly 70% of amazon's customers shopped using a mobile device. that's an interesting number. 70% using mobile, not desk top. and we know they had tens of millions of prime users.

>> not hundreds of millions of prime users. >> tens of millions. >> yes. >> we'll wait to see when they get to hundreds of millions. >> the point is don't know the numbers. >> when they say we added 3 million prime members, where are they? are they in this country or abroad? prime is the major driver where we are with amazon. that's why they are taking so much of e-commerce. >> hundreds of millions just to be clear is what some analysts are predicting in terms of half of the u.s. population. >> hang on. what we have is it's a quarter of u.s. households which takes you to about 30 million on their estimates. >> if you have 30 million now -- >> 120 million households in the country. the gross go to half million down the line which is that growth in 3 million prime becomes important in where you are. >> in one week, that's big. because they want to get it in before the year end. want to get their free shipping.

>> and they do that fast shipping. they said the last delivery was right before the day -- >> that's fine now. somebody comes to your home and hands it to you for -- >> on christmas day. >> they'll do it within hours on prime now. overall, this has been the year of amazon, fair to say. not just the performance of the stock price but the underlying performance of the company in terms of sales. sometimes we had don't include third party sales. they're used as platform by many others who record the sales, amazon taking 12% to 15% of the sale. when you assume what the number really is, you're getting to numbers that are 162 billion over the last year in terms of their third party sales, growing as much as 40%. >> but what is the profit margin? that was the shocker this year, yes, they're making money but making money from web hosting. >> they are. >> for many years they were running -- >> the margins are still tight,

but the third party business has a higher margin because all they're doing there is allowing you to list and doing the -- for extra fees, doing the shipping for you. >> and a huge cost in building up distribution centers in that. >> many say that has given them a significant barrier to entry for those who might try. including interesting stories on this company jet.com, some interesting stories about their attempts to compete with amazon. >> we have an analyst later on to talk about this valuation of amazon, how do you figure that out. clearly online retailers dominated the holiday season. malls continue to take a hit. the warm weather certainly not helping. joining us to discuss retail winners and losers, matt voss, managing director after jpmorgan and number one ranked retail

analyst. thanks for being here. >> thanks for having me. >> you do not have many buys in the retail universe. >> we have the lowest percentage of buy ratings in five years. virtually nothing in the mall. >> do you feel like moves like 40% plunge in macy's shares are justified, overdone, underdone? where are you on what happens with some of the department stores? >> we think brick-and-mortar retailers are in transition now. a lot of what you were talking about with amazon, you have online that is still only 10% to 15% of overall sales today. you have retailers like prime mark coming in for fashion. tjx and the off-pricers getting bigger. the consumer is the winner. a lot better deals. a lot better discounts. it's the brick-and-mortar retailers trying to figure out what percentage longer term is online verses what will be sold in the store. but they're stuck with the store

bases like a macy's sitting on 800-some stores, and they need to figure out what is that right algorithm longer term. >> is that why boxing day or september 26th, the day after christmas in this country was a big deal? because the discounts were so deep? i read american express had a survey saying more americans planned to spend the day after christmas than on black friday and cybermonday. >> the number one issue is the weather. weather was 50% of the miss for most brick-and-mortar apparel retailers. it's not all of it. you had tourist spending which is reduced. on top of it, this online move, this fast fashion and off-price retailers. in terms of boxing day, it's great you drew the crowds but terrible for margins. that's been the story of the year. good black friday weekend, very big lull between black friday and christmas weekend. you had a solid push the day before christmas, the day after. the problem is into the spring we'll go right back to some of

the trends that we saw for pretty much all of 2015. >> what do you need to be doing if you're a retailer in this transitioning environment? we see it. we just spoke about it in terms of amazon's dominance this year. it doesn't have to worry about catering to one part of the population or a certain demographic. it caters to everybody what do you do if you're competing against them in 2016? >> the only answer is value proposition. you need brands. brands are driving traffic. nike is driving traffic. every retailer wantsunder armou can get their hands on. there's not a lot of newness, so in this world with the consumer seeking the value proposition, you need sales, discounts or the top brands. that's the only thing selling at full price. >> do i still need a huge retail real estate -- do i need a huge estate of retail stores?

do you need to keep all those franchises open or do you hope for better days? could a co, could a macy's co say i'm cutting 100, 150 stores and that would be good for the market or will it be seen as weakness? >> for thor in the it will be seen as accepting the reality of the world we live in. brick-and-mortar will be cut by a third over the next 5, 10 years. >> that's the reality in your opinion. >> yeah. >> they didn't do that in the recession. that's the one thing they don't do. >> i think they'll be forced to. it goes back to the equation of 10% to 15% online today, that number is going far higher. a & b malls today make up 200, 300, yet we have 700, 800 macy's locations out there. >> any turnaround stories out there?

abacrombie a abacrombie has been putting out good numbers lately. >> you have a second bucket of retailers out there, jcpenney is one that people were looking at, second half of '15 to 2016. abercrombie and american eagle. they sort of bounced off the bottom. to be a real turnaround story you need something different, you need that smaller brick-and-mortar base, that online opportunity. i would look more to lulu. >> won't each of those apparelmakers believe they can capture market shares with these brilliant ideas they have to sell next year or don't all of them believe they can do that? >> of course. that's where it comes down to that price value relationship, having the best brands and drawing the traffic. there is value in the mall.

look at limited brands, they're in the malls where the other retailers are situated. >> that victoria's secret? >> yeah, and bath and body works. >> fewer people are going to the mall. will that continue? >> it's factual. decline in mall traffic continues. it's that combination that retailers are talking about. that omni channel expense only goes higher that comes back to the cost of doing business as a brick-and-mortar retail is going higher. >> i know we're out of time, i want to ask one final question. given what you cover as an analyst, given the fact that oil has been a weight on this market, people can leave these type types of conversations as a glass half full what . where do we actually live? >> healthcare is higher, rental

costs are higher, those are two major offsets to the gas price savings today. the consumer continues to be on a steady climb higher but not a v-shape recovery. >> off-priced athletics, got it. when we come back, fit by the is one of the pre-market movers. and deadly storms bringing tornadoes to texas and wintry weather across the midwest. a live report from the ground straight ahead. looking at the futures market. about 15 minutes to the opening bell. futures pointing to a lower start, off the lows of the session. the dow set to open down 84 points. much more "squawk on the street" when we return.

deadly tornadoes over the weekend being followed by a blizzard. the weather channel's mike sidal joining us from amarillo, texas. >> reporter: good morning from interstate 40, the sun is up in amarillo. the temperature is holding at 24 with a windchill of 8, nominal for this time of year. this section of i 40 to new mexico is shut down. also a section to the state line with oklahoma. expecting i 40, both sections to open up later this morning.

the wind has backed off. the snow has stopped falling. lubbock picked up 11 inches of snow yesterday. that's the snowiest day on the calendar record in december. parts of new mexico had eight-foot drifts. along the gulf coast, another tornado watch. we've had tornado warnings in parts of mississippi this is heading east across alabama and georgia today. if you're in that area, i-20, i-10, be aware of the dangerous weather there. over the weekend we had tornadoes, nine so far confirmed in dallas, ft. worth. they killed 11 people. following that killer outbreak on christmas eve in mississippi and arkansas. now we're dealing with flooding continuing today. so far we had 11 deaths from flash flooding, just flooding. people driving through roads that are underwater, parts of the midwest down to arkansas, that's another concern today. the snow and ice that was here is heading into the midwest.

minneapolis in line for snow. snows in des moines. if you got to pick one airport you want to avoid today it's o'hare in chicago. a winter storm warning for sleet and ice. already there they canceled 300 flights. hundreds are delayed. that will have a rippling effect across the country. there you go in a nutshell. the record warm december for many of us east of the rockies is coming to an end. even in new york, philly and boston. temperatures getting close to average towards the end of the week and the first of the new year. sara, david and simon, back to you. >> winter is finally coming. up next, art cashin on what to expect on the final trading week of 2015 as we count you down to the opening bell in ten minutes. take a look at futures. the indication is we'll be slightly lower after a bumper gain for the market last week. more "squawk on the street" live from the new york stock exchange when we come back.

about 6 1/2 minutes before the opening bell. let's bring in art cashin, director of floor operations with ubs. wti is down. don't know if that's a key to the market, but i would assume it's part of the overall tapestry. >> it clearly is. if wti breaks below 37, it will put extra weight on the market. still trying to absorb the two big updays they had. we may have cheated santa claus

out of a couple days by doing that. this is usually a quiet week any way. with the idea that they're celebrating boxing day now instead of the immediate day after christmas, london's closed, canada's closed. this should be very, very dull today. this is typically a quiet week. you see some anomalies in trading sometimes. but some stocks moving more than they otherwise would. >> the fact that the winners last week had been the previous losers tells me some of it may have to do with tax selling and that's abating. >> because of the lack of action so far, so close to the flat line, this comes close to performi performing at the slowest of the year. what numbers do we need to hit for the market to go higher next year? >> a friend of mine said it

would be important for fund managers to nurse this to a plus state, the advertising for negative ticks is not good. we are seeing people pull money out of funds at a record rate. the year ending in 5 being down i don't think has happened in 140 years. >> what does that tell you? >> it's time to break the record. we'll see. this tells me we will probably wind up with a small gain for the year. >> what is the set up into next year? the fact that so many people will see declines in their stock portfolios this year for the first time since 2011. what does that mean for next year? >> you hit that right on the head. the idea that even if averages are up a bit. if you're not in the ten largest s&p stocks, you're down. the ten largest stocks are up. the other 490 are down.

>> at the same time you might find the savings rate still rises with people saying this isn't working well. >> that's the problem. that statistic i gave you tells me anybody who has been trying to diversify has been -- >> no asset class up this year? >> no. >> nowhere to be seen. >> nope. nope. the nasdaq had a bit better performance. art cashin, thank you. the opening bell coming up. stay with us on "squawk on the street." here at td ameritrade, they work hard.

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you're watching cnbc's "squawk on the street." the opening bell ringing in a half minute or so. you can see right there, celebrating the apple circus, typically held behind lincoln center in case you're in for a circus. >> i'm not, but i know sara eisen is. >> you're the one with children, you go to the circus. >> cirque du soleil. >> cirque du soleil is always

fun. without a doubt. >> we'll be watching oil today. that's a big part of this story. the energy sector down 8% for the month after a pretty strong rally last week. that will happen today with oil prices under pressure again. >> and as you hear, the opening bell. you can look back at the real time exchange at cnbc hq. at the big board, the big apple circus led by a swing master. at the nasdaq, the 5 under forty foundation. we have, as sara mentioned, a lot more red on the board. we entered today with the s&p, i call it flat, but for chose who care a tenth of a percentage point, it's up. wait, it's not anymore. now we are down for the year. >> we did gain 2.8% last week

because of that rebound that you had in oil. so if oil is able to turn around, talk about the saudis, the saudi budget and the pressure they're under, but as we said this is a defining week for performance. you're relatively flat with the exception, as david rightly points out of the nasdaq, up over just 6%. the nasdaq 100 with the bigger chips up over 10% off the top of my head. >> the dow jones industrial average down 1.5% year to date. which has been surprising. i would say the dow outperformed the russell 2000 of small cap stocks which are down more than 4% for the year. walmart at the bottom of the heap. interesting not to see the energy companies at the bottom of the dow. seeing a lot of dow stocks

finishing positive like home depot and other big companies. >> within the s&p, energy is certainly the component that suffered the most led by chesapeake. question look at it today. chk. had a good week last week as did freeport and many of the pipeline companies. almost anything associated with the commodity had a about week last week, not so now. shares of chesapeake down a little over 4% right now. freeport also down as well as you might anticipate. the broader market down sharply. one name that was not up last week, changing tactics here, is disney despite the incredible success and continued record breaking success of the new "star wars" movie. both of my colleagues have seen it. i have not. >> i saw it on christmas day. >> so did i. >> it was a nice tradition. and i'm not a "star wars" fanatic. i had not seen any of the previous films and i still loved it. i would totally recommend seeing

it in 3d. >> last week disney was down, not because of "star wars: the force awakens" but because of fears that we talked about so often in 2015, about cord cutting. people saying no more to cutting, or shaving. that means having a smaller bundle of channels that would not include espn. that had disney shares down a decent amount last week in spite of or despite, i should say, great success at the box office. >> there's a milestone that walt disney crossed $1 billion already, the fastest movie do that. >> 12 days. took 12 days. >> so there's momentum there for the entire ecosystem of sequels, spinoffs, theme parks. this is good news that you can take a movie that some people

have not liked, like sara eisen. >> the expectations are greater because it has been a global box office event. >> because they used up all their tokens for foreign films in china. they had to delay it until the new year. >> is that why? >> there's a quota. >> this year at the box office $11 billion year. one of the highest years. like the stock market that strong box office year has been on the back of a few select films. >> jurassic world. furious seven and the avengers. wanted to talk about valeant. the stock is down over 4% on news from the company we got over the weekend, additional news this morning, announcing that the chairman and chief executive officer michael pearson is on medical leave of absence effective immediately. he apparently has a severe case of pneumonia, according to the company. in his absence the board of directors created an office of

the chief executive officer that will include an executive vice president and general counsel, another chairman and a chief financial officer, all of whom will be getting together in the so-called office of the chief executive officer and operating in an interim basis while mr. pearson is on his medical leave. michael pearson is the architect behind the strategy at valeant that has over the last few years that has included aggressive acquisition and cuts in r & d spending. this do spend some money on research and development. it's a unique approach in some ways that's been rewarded until the last six months by the stock market. they were unsuccessful in buying allergan. that company now, of course -- allergan then actually bought by the old activists, now called allergan and now merging with

pfizer. valeant stock price one of the worst performers this year, though it has come back a bit. down this morning. there are some questions about if he is incapacitated for a long period of time, what will that mean for the company. is there a potential where you would see them move into a different mode in terms of taking apparent the company? that's all speculation at this point. severe pneumonia, that's all they're saying citing privacy being requested by mr. pearson and his family. >> another mover is alphabet. they got the barron's cover, the company formerly called google, a positive report on alphabet saying shares could rise 30% to 1,000. they cited the growth of youtube, strong numbers like the new-found cash return under the new cfo, ruth porat. they said facebook could pose a

threat to youtube as the video platform gets more users. a positive story helping shares out a bit today. >> let's mention fitbit. fitbit one of the big gainers. i was looking for a reason why fitbit might have gained. up about 4% after a lot of commentary and losses for many of those companies. fitbit is a big gainer. market overall down 82 points. have you seen reason why we might be higher here? >> on fitbit? >> yes. >> i saw an article that it was one of the most downloaded apps. >> i wonder if that's a realtime -- if that's a realtime version of knowing how your sales have done over the holiday period, if you can look at how an app downloads within that period of time as an indication of how much of physical merchandise has been sold and how much of it is left on retailers shelves. >> also some analyst reports

citing strong demand as a holiday gift. electronics are the sweet spot in terms of the retail spending. interestingly enough, apple getting mentioned when it comes to the strength of products and gifts given over the holiday reason that doesn't seem to be helping the stock out much. >> no. apple at the end of the quarter does seem more often than not to have more downside, and that is proving to be the case now. amazon shares up not quite 1%. we mentioned earlier the long release they always like to put out at this time. the key news, if there was any, 3 million new customers for prime in the third week of december or more than 3 million. all they'll tell us is there are tens of millions of members worldwide. they are having success with their video business. "the man in the high cassel" the most watched tv season on prime video by 4 1/2 times. >> that's meaningless, they have no figures to back it up.

completely meaningless. >> we don't know. >> have you watched it? >> i have not. >> it has a french resistance feel. >> based on the book. >> it is. roughly 70% that accessed amazon using their mobile device, which is the transition we've also watched, not just from bricks and mortar to online, but the way people are using online. alibaba has come up so often when we talk about that company in terms of mobile. for a long time -- there was an issue sometimes with people having to access whatever they wanted on a mobile device. that seems to have been done away with. people comfortable using their phones to buy lots of stuff. >> why the google buy button and the hosting of that is important as a development during the course of the year, you can take other retailers across the spectrum and make it easier for people to operate on mobile phones without having to logon

to an individual retailer's website, press that buy button through google or amazon and track the sale, not necessarily on their website and therefore them getting information. >> this is a broad selloff. all major s&p groups are in the red. energy getting hit the hardest. 29 or 30 dow stocks. also in the red, disney. >> did you read "the girl in the chain?" >> i did not. >> i did. apparently a lot of other people did. it was the top book on the kindle in 2015. took place in the uk. you should read it. >> advertised on the subway. fascinating to know what volumes are here. volumes in europe were tiny compared to normal. it's not necessarily a huge selloff. it's probably more of a markdown. let's get to bob pisani on the floor of the exchange for more information on where we trade now at ten minutes into it. hi, bob. >> hello. happy new year. volume on the light side. that's not surprising.

put up fitbit. i don't know why fitbit is up. it's the top app in the apple store. i don't think it was earlier. it was in health but it wasn't prior to that. i think what's happened is people saw it's the top app and they said, heck, people must have bought a lot of fitbits and they're setting them up. that's probably the reason white now. you see fitbit up 3.7%. elsewhere, looks like we front-runned the santa claus rally. we were up 3% in the s&p 500, and the problem is the two forces that movement market most this year are the ones moving today, china, and oil. shanghai is down. that's strange for hang shshang. shanghai has been range bound. when you see crude down, that's the number one issue for the stock market this year. if you look at energy stocks,

which we have done so many times, console energy, some of the big names in the s&p group on the down side. southwest energy is up. chesapeake, range resources, i have put these names up so many days. u.s. exploration and product thproduction companies, they are embroiled in your brain. we are talking declines of 70%. these declines that we saw in them were not the worst of the year. those are not the worst numbers. we had a nice bounce last year, last week. some of these names here like southwest were up 15%, 20% last week. we're well off of the lows that we had last week. so we're moving back down again.

major markets this year, it's a coin toss on whether or not we'll be positive on the s&p 500. essentially flat on the year. this has been a big surprise. at this time last year nobody was picking shanghai to be one of the top markets of the year. that's because this was supposed to be the year where the slow down in china was going to hit. nobody had china as a top pick. germany, nobody had europe either as a top pick with those sluggish no-growth economies. i picked europe outperforms as surprise pick because so few other people had that. turns out that was a good pick. japan was the one pick on everybody's list last year. that's the one prediction that did happen. other than that, u.s. was supposed to be the best place to be in 2015 in terms of the stock market. that's not particularly panning out. we got numbered over the weekend on exchange traded funds. the final numbers are not in

yet. the big trend continues. there is money coming out of mutual funds this has been going on for years, money going into etfs or exchange traded funds. $100 billion in outflows, and 150 billion in inflows into etfs. this is equities, mutual funds, money market funds. bottom line is even though there's tremendous volatility that we saw in energy and high yield, investors continue to see the value in etfs over mutual funds. energy, despite the moves in and out of energy there are still in-flows into energy funds as traders try to pick bottoms. that's been an unsuccessful strategy so far this year. guys, back to you. >> thank you very much, bob pisani. let's head over to the bond pits now. rick santelli at the cme group, good morning. >> good morning, sarah.

i won't show you an intraday of tens. not a lot of volatility. december 1st ten-year, you can see how it looks. some volatility, that's to be expected in between the two major holidays. maybe we want to look at the dollar index, intraday, it has had decent moves but close to unchanged. one reason it's bouncing around is because the chinese won. look at month to date, not on the best levels, but firm. you want to continue to monitor the 98 and 100 above the market. if you look at the dollar versus yuan, the dollar made its highs around 2:00 a.m. eastern, about the time you saw a good volatility trade in the dollar index make sense.

how far back do you have go to see the dollar at this level? may of 2011. this is a big dynamic after that december 16th, the yuan stopped the streak of ten sessions low weaker against the dollar, so maybe pay close attention in between the holidays of that relationship. it's all about commodities. is it unusual to put money in a fund now for energy? accumulation at these levels is probably not a bad idea. 20-year chart gives you everything you need to know about the weakness in the commodity index. simon, back to you. >> one of the major stories and events of 2015. how well did the shippers fair this holiday season? some answers coming up on cnbc. tomorrow on "squawk on the street," a first on cnbc,

interview with the ceo of u.p.s., david abney.

as we learned, as goes oil so does the market. jackie deangelis has more. >> we saw a few days of buying into the holiday, into the long weekend. this was not surprising to traders but they were saying fundamentally nothing has changed here. we are trading under $37 a barrel for wti and brent. that spread has flipped. brent is trading under wti, that's something to continue to watch here as brent has fallen out of favor. the preliminary numbers came out this morning on the saudi arabian budget. they released figures for 2015. we know a near deficit of almost $100 billion. revenues less than expected. spending was higher. this is not a good equation for the kingdom. problems not just for ausaudi

arabia but for the entire industry. people will look at how many years they're looking at this to continue for. how saudi arabia will weather the storm. will anybody want their debt? this speaks to the fact that low oil prices are squeezing the strongest producers now. simon? >> thank you very much. when we come back, the new "star wars" film crushing records. how forceful was hollywood's box office overall? what does it mean for the regional movie theaters? we'll get one analyst's report card. announcer: sleep train thanks all those

who helped make a difference last year for thousands of local foster kids. thank you for helping foster kids. thank you for the school supplies. thank you for the new shoes. thank you, secret santa. and thank you for donating money. announcer: your generosity proves that while not everyone can be a foster parent, anyone can help a foster child. thank you. thank you. gracias por su ayuda. [baby coos] thank you.

"star wars" pocketing $1 billion globally at a record pace. the movie has not been released yet in china, the second largest movie market in the world. after an extended weekend, let's look at where the movie theater chains stack up. chad bynum is an analyst. you are surprised at the speed at which "star wars" appears to be progressing?

>> good to speak with you simon. the numbers we've seen so far have surpassed expectations. the best opening weekend, best second opening weekend, and on christmas day, 5 million people went out to see the movie. the numbers are staggering but the stock has not reflected what's going on with the numbers. >> spauk me through you're referencing the regional theaters. talk me through what is going on there and what your analysis of them is. >> there was a bit of buy the rumor on the release. the numbe we're looking for box office revenue growth to be down next year 3% to 5%. that's the big thing people are focusing on. 2015 will be a record year for box office revenues and cash flow. the one company in the space that we like the most is regal

cinema. we upgraded the stock about a month ago. we think 2016 estimates are conservative. looking at the film splat flate next year, we're not concerned about a selloff after "star wars." >> why would you argue that? >> first off, the studios are making record profits. they're continuing to put out a good number of movies here. as long as you have 100, 125 mainstream widely released movies, we're not concerned on the number of films out there. secondly what we saw after avatar came out, there was a period where people who are traditionally non-moviegoers went to see a movie in the next three to six months because they had a good experience with avatar. we think that's the case with "star wars." people who have not seen a movie for a good period of time went out to the theater, experienced

the plush reclining seats, enhanced food and beverage menus and said this is not a bad option. >> it's true. sara and i went to the movies over the weekend, but we thought there would be assigned seating. when we come back, prime time for amazon after the company reported this morning a record holiday season. we'll look at what it could mean for the stock next year after it more than doubled in 2015. "squawk on the street" coming right back.

good morning. welcome back to "squawk on the street." i'm david faber along with sara eisen and simon hobbs. carl quintanilla has the day off. let's give you a look at the markets right now. about a half hour into trading. we are down on the broader averages with oil leading the way. now down over 3.5%, after strong week last week. that's the biggest decline we've had in the last couple of weeks. it is pressuring the broader

market. simon? >> let's get our road map for the next 60 minutes on cnbc. only four trading days left this year. how should you position through the holiday-hashortened week fo 2016. >> and amazon said it had a record breaking holiday season. we'll get what that means for the stock. and how did the shippers do? did all the packages make it on time? let's start with the selloff we're seeing. we're in the final four trading days of 2015. u.s. marketing reacting to a mix of slow global growth, low commodities prices and a stronger u.s. dollar. chad is the founder and portfolio manager, and jason pride is with glenn meade. chad, given the weak factors weighing in on stocks, how did you perform this year? >> we beat our benchmark and our

rising dividend portfolio was up in relationship to the s&p 500 by greater than 100 basis points what our position is for 2016 is again to be somewhat more pragmatic and balanced in the portfolio. we are moving up quality spectrum looking at qualities that have much less volatility. so the big blue chip names, more of the consumer staple names. >> interesting strategy. jason, i mentioned a few factors that weighed on stocks, lower oil prices, commodity prices, sluggish global growth, stronger u.s. dollar, is any of that set to change in 2016? >> the u.s. dollar had a relatively strong move. we expect there to be support underlying that the move will probably be relatively modest compared to what we've seen so far. i'll prices, the first half of

2016, there's likely to be continued supply pressures. when you look at the back half of 2016, it's likely supply pressure al, it wils will dimin. we will have go through six months of oversupply to put pressure on prices. this environment sets up an investor to continue to participate in a growing economic expansion. we have to recognize the fed is

>> one is excesses that collapsed. the other is monetary policy getting overly tight. we are nowhere near any of those scenario

scenarios. >> we were just getting to the best bit. he was telling us how long we would have go. are you still there, jason? we lost the satellite. chad, let me come back and talk to you about where you were on the blue chips. you were suggesting people should move into blue chips and consumer staples. is that effectively defensive strategy? >> yeah. absolutel absolutely. >> we believe global growth will continue to decelerate across the emerging market region in particular. we think there will be tremendous volatility in 2016. we want to be in lower beta stocks. companies that have consistently grown and are profitable and have balance sheets that don't have a lot of debt will outperform the s&p 500 in 2016 and into 2017. what about in terms of absolute performance. where do you think the market will go? do you think cash, given where

we've been this year, cash will outperform? >> i think the overall market for the s&p 500 will be up 4%, 5%. you will have a very volatile situation for the next 12 months. i would not be surprised to see that 15% decline in the s&p 500. when we look at earnings, earnings is what drives the equity market, we think the earnings for the s&p 500 is going to be up perhaps 1% to 2% for 2016. with revenue growth flat to down again for 2016. >> chad, you're not looking for bargains in energy which is the worst performing sector so far this year? down 23%? or even financials, which are increasingly tied to what's happening with oil, it sounds like. >> so, when it comes to the energy complex and the commodity complex, we are still continuing to forecast that energy as well as other commodities that hit

lower lows. this is not only a supply issue but a demand issue. one has to consider emerging markets, particularly china, its contribution of growth is roughly 75% to global growth. we believe the emerging market region will continue to decelerate. so our global growth forecast for 2016 is between 2%, 2.5%. that's far lower than the imf has as their expectation. that is one thing to consider. >> okay. chad, we have jason back. we reestablished the satellite. you were just getting to the good bit. i asked you when you thought the economy would start turning down because stock markets typically price in where we will be in 18 months time. you were going through the background and were going to tell us how long we would be in an upwards direction and then we lost you. you can bring us up to speed

there? >> sure. what i was saying is without excesses sitting in the system and without the monetary policy getting overly tight, neither of which are developing at this point in time, it could be another three or four years before we see the end of this economic cycle. we have to see those excesses build up or the central bank really bear down for us to see the other side of that equation. >> thanks for joining us on this monday morning. >> thank you. after last week's strong rally, crude oil is down today. saudi arabia unveiling its 2016 budget for one. jackie deaeangelis has more. >> we are waiting for 2016 numbers. none of this is surprising or encouraging. we do know low oil prices have had a big impact on the kingdom. they talked about a deficit near $100 billion for 2015.

lower than expected revenues, higher than expected spending. this kingdom drives more than 80% of its revenues from commodity. the last surplus that the kingdom saw was in 2013. the question is how long will this last? estimates looking for another two to three-year range which could add more pressure for audi arabia. raising other questions here. saudi is not known for coming to the market for financing, but it did so this year raising $4 billion. will it continue that trend? will investors want that debt? s&p back in october downgrading saudi arabia to a negative outlook because of this drop in oil prices. also not encouraging in the marketplace, chatter about iranians bringing their oil back to market and discounting it. that will create a situation where iran strives to get more market share and saudi arabia has to compete. the kingdom is being squeezed.

if they're going to maintain their stance with opec t will cause some pain. they will need to drastically cut spending and looking at initiatives now like raising energy prices for gas, electricity and water this is a kingdom that has not taxed people historically. these are big changes to come. besides oil, the other move that caught our attention is the hang high composite. the stock market falling more than 2.5% overnight. its biggest loss in a month. there were a number of factors that led to this drop, right? >> the sixth consecutive drop in declines, highlighting once again weakness in china's economy. the expectation is that the central bank would respond with further easing, but that didn't happen, therefore disappointing investors. there was proposal to change the way china manages ipos, transitioning towards a u.s.

style registration system. the concern is this could lead to an excess number of shares on the market. finally another story that captivated the attention is the chairman of china telecom, one of the largest mobile operators is being investigated. he is suspected of serious violation discipline. his name is chang xiaobing. a campaign on the crackdown of construction was launched a couple years back. but it has raised fears as to which executive or company will be next. overnight the shanghai composite suffering its biggest loss in a month, nearly 3% decline. year to date you'll see the stock market in china the hang high up about 9.5%. a couple stories to watch on that side. simon? >> yeah, a crackdown that has some real implications. seema, thank you very much. up next, amazon says it has

the biggest holiday season ever. prime, more than 3 million people signing up last week alone what does it mean for the stock that rallied so strongly into this holiday season? more on that when "squawk on the street" comes back.

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not just to help keep you well. but to make sure the cost of being unwell doesn't ruin this whole life thing. because it's more than just health care. it's life care. who helped make slea difference last yearose for thousands of local foster kids. thank you for helping foster kids. thank you for the school supplies. thank you for the new shoes. thank you, secret santa. and thank you for donating money. announcer: your generosity proves that while not everyone can be a foster parent, anyone can help a foster child. thank you. thank you. gracias por su ayuda. [baby coos] thank you. amazon said it had a record breaking season as 3 million people more signed up for prime in just one week of it.

courtney reagan is back at hq with more. >> amazon is one of the holiday season winners. it was evident early on in the shopping season. while the online booking companies release metrics in clunky form, it continues to take share. one major attraction is amazon's prime program which offers free two-day or faster shipping on millions of items, media content, photo storage and more. amazon never disclosed the total number of prime members it has, this is the second holiday season it released some prime metrics. the company says more than 3 million customers joined prime in the third week of december. last year it said more than 10 million new members joined over the whole holiday season. retention is never discussed. the first 30 days are free, afterwards it's $99 per year. so, who knows how many of those 3 million will be staying on and paying customers. it is estimated amazon prime had

40 million prime customers in the third quarter. they had many high profile sellers but it singles out the kindle paper white and cards against humanity and fitbit charge as the highest number of best prime sellers. four of the top five products amazon sold were amazon items. victor anthony raced the price target on amazon shares to $797 from $727. based on increased revenue estimates. you can see now shares are trading at 670 and change.

>> courtney, thank you very much. let's get more on what this could mean for amazon shareholders, eric sheridan is managing director at ubs. strip out what we need to know as investors here, if you could. >> a couple things. referenced earlier was how many prime they added last year, plus what we saw in the third week of december this year. prime has a tremendous loyalty impact. people go direct to prime, we saw a reacceleration in e-commerce growth for amazon, once people become prime custome customers, they spend more money. and that's a leading indicator not only for q4 but in 2015 as we get deeper into the year. >> the big question for people watching is that they will be aware that the stock way more than doubled during the course

of this year. it's ban stunning performer. therefore as investors we're pricing in some pretty good performance here and for next year. your price target, correct me if i'm wrong, is $700. that's $30 upside, and people might question the risk reward relationship. >> we talk a lot about upside and down side, we see more upside than downside. we're in the early days of profitability at amazon. that's something we have to see flow through the numbers. we've seen three, four quarters of increased profitability for amazon. it has great revenue growth, great scale, it never really

makes much profit, that has not been true. we think that will continue in 2016. this was the year where we saw the disclosure around amazon web services, the cloud services, this that people thinking about amazon web services and other things. >> what happens to margins? you also hear amazon has all these grand plans with drones, creating its own shipping network, that will be expensive what gives you the confidence that margins can improve next year and that they'll continue to post profit? in the past that hasn't been a strategy that jeff bezos has stuck to. >> one is logistics, drones is in that category. media investments, but if you look at -- started at the revenue side, you're talking 125

billion plus of revenue. the scale of amazon is playing out. even if you add 15 fulfillment centers every year, you are adding it on top of an expanding base. there's not that many dollars you can spend on an incremental basis. in addition the third party business is much more profitable than the 1p business, amazon being the seller has increased in profitability and scale as well. >> good to see you. >> thank you. happy holidays. >> happy new year. do want to look at shares of valeant pharmaceuticals. they are down about 9% after the company this morning announced that its chairman and ceo, michael pearson, is on indefinite medical leave as a result of what they told us a couple days ago was a severe case of pneumonia. mr. pearson, of course, the embattled ceo to a certain

extent, the architect of the company's strategy. that is different from so many others in the pharmaceutical industry, specific to the percent of revenue spent on research and development being far lower at valeant. the company benefits from a low tax rate. it's been a serial acquirer, but has run into problems with its stock price as well as questions about its relationship with the specialty pharmacy called philidor, for which it paid $100 million for an option to buy, that relationship has ceased. philidor has stopped doing business. recently valeant was pointing to what it said would be a successful 2016 and trying to rebound from this difficult period in which it saw shares fall as much as $70 after being as high as $24. the stock now down about 9% it is forecasting between 12 1/2

and $12.7 billion in sales next year, including oncology, dermatology and skin care, ophthalmology, of course, it owns bausch & laum. all of this is to say, as it is run by an interim group of managers, the question is what about the future should mr. pearson's illness prevent him from leading the company for quite some time. we don't know. >> we don't know. the statement from them is absolute. we will not be commenting further on the condition at this time nor the expected length of his medical leave. don't they have a fiduciary responsibility in some sense to tell people whether this key individual -- for how long he will be absent? don't they have to update the market on that?

>> you would expect the market would want to know at some point. nobody can foretell of an injury. we hope that mr. pearson, who is a workaholic recovers swiftly, but we would expect some updates along the way. when we come back, might have been a holiday weekend but presidential campaigning was in full swing. we'll wrap up what you missed over the weekend and what to expect this week.

broad market selloff. s&p 500 down 0.6% after a 3% surge last week. all major industry groups are in the red. energy getting hit the hardest on the back of crude oil, financials the second worst performers. the dow is down a half percent.

disney doing the best. nasdaq getting hit the hardest, down 0.7% after finishing the year or looking to finish the year the strongest of the bunch. >> i would frame it coming off a strong week in which the s&p rose 2.8%. can you hang on to those gains? kind of. >> 3% surge, still a down month for december. >> that's true. straight ahead, fedex trying to play catch up to deliver late holiday packages. more details on how the shoppers fared after this break.

good morning. i'm sue herera, here is your cnbc news update. iraqi forces are raising their country's flag over ramadi after retaking the city from militants. heavy fighting had been taking place for a week. iraqi military say their forces are in control. isis occupied ramadi since may. a mall in suburban louisville reopened after a massive brawl involving 2,000 people. the chaos started saturday night and mostly involved teenagers. peyton manning denying allegations that he used performance enhancing drugs in 2011. the report by al jazeera claims he received hgh following neck surgery. the course used by al jazeera has since recanted his allegations. and fans can't get enough of

"star wars." the film is the fastest to hit the $1 billion mark, taking 12 days. the record was formerly held by jurassic world. that is the cnbc news update. sara, back to you. >> disney best performer on the doull on the back of that. thanks. the central united states getting hit with tornadoes, blizzards and heavy rain over the weekend. reynolds wolf is live for us in oklahoma city this morning with the latest. reynolds? >> hi, sarah the latest we have is precipitation has come to a screeching halt. we have a coating of sleet and ice over much of the city. the wind has been relentless. that was the case yesterday and today. a lot of movement with that wind. not a great deal of movement out of the interstate. i 40 on the other side of the camera, it is slow and go. people are urged to stay off the roads. to my back, you have meridian avenue, that leads to the airport. that leads to will rogers world airport and you have backups

there. according to flightaware.com, the number of delays, nationwide, 2,941. total cancellations, 1,112. these numbers fluctuate like the stock market or the dow. you will have rises and falls. i would anticipate things would be increasing with delays because this storm system will march its way to the great lakes and that means more delays at o'hare, st. louis, detroit and you have the trickle down affect of other places. you have backups in atlanta, out of l.a.x. in the west due to volume. weather being the number one contributing factor to the headaches. big problem we also have in the world, power outages. thousands of places have been without power. those numbers expected to go up due to the ice and wind. with temperatures at or below the freezing point for days to

come, difficult for people to stay warm with the winter weather. back to you, sara. >> thank you very much, reynolds wolf. go inside the truck in a windy oklahoma city. presidential candidates making headlines over the holiday weekend. john harwood is live in washington with a look at that and what we can expect from another busy week. >> we're still in a bit of a lull in the campaign because we have a full month of january before those iowa caucuses. some action over the weekend, marco rubio picked up an endorsement from trey goudy, well regarded among conservatives in the house of representatives. donald trump oddly spending christmas eve and christmas day tweeting out insults to "new york times" reporters and chuck todd and other people, though we have come to expect that kind of thing from donald trump. let's step back and look at the big picture, where they stand first of all nationally. you can see the structure of the race has been consistent. the top three candidates, donald

trump, ted cruz, and marco rubio. interestingly when you go to iowa, the top two positions are flipped. cruz has a lead in iowa. that's important. it's the first contest on february 1st. if ted cruz can hold on to that lead, he will get a spring board out of iowa and wound donald trump. if new hampshire, trump is in first place, rubio is in second place, then ted cruz tied with chris christie. in new hampshire you have rubio, christie, bush, kasich trying to emerge as a mainstream alternative to ted cruz and donald trump. so donald trump still a consistent leader but subject to fluctuation once the voting starts february 1st and new hampshire on february 9th. >> finally we're getting there. john harwood with an update on

the gop race. clearly a busy holiday season for the shippers. to what extent did the packages make it? morgan brennan has the update. >> reporter: i think that's a big question. fedex in particular not delivering all of its planned packages in time for christmas. the company citing severe weather in certain parts of the country. also saying in the week leading up to christmas it handled volume that far exceeded previous records including an unprecedented surge of last-minute e-commerce shipments. fedex not disclosing how many shipments missed the holiday deadline. they did add operations on christmas day and expanded operations for saturday as well. analysts say the early readings show that fedex's volumes were much bigger than anticipated and that was tied to the forecast that came from certain retailers and what they expected for the holiday season. that's something that likely

contributed to delays that certain companies reported last week like pacific sun wear. u.p.s. seems to have handled its volumes better. all of its packages were delivered by 8:00 p.m. on christmas eve. they both had high on-time delivery rates at the beginning of last week but as the week went on and bad weather gripped the south, and a spike in e-commerce shipments, the fast express service fell dramatically for both fedex and u.p.s. before recovering on christmas eve. how much did shipment companies have to pay to get packages to doorsteps? >> morgan, thank you very much. we have the co of u.p.s. on the network tomorrow. up next, find out what's ahead for real estate in the new year. plus why this stock is down more than 75% today.

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energy off by more than 1.5% this morning leading all s&p sectors lower. taking the s&p back into negative territory for the year, so far into this trade, this as crude oil enters an 11-year low falling to $36 a barrel. dragging the sector down are shares of console energy, chesapeake, marathon oil and murphy oil down 3% to 9%. chevron and exxonmobil weighing the most on the dow. >> we should mention freepo fr c mcmoran chairman james moffett

is stepping down. he's been in the business for over 50 years. he will step down now as chairman of the board and again co-founder as freeport. the company itself having a difficult run of things. many of its shareholders and those who follow the industry know. about three years ago it announced the acquisition of plains exploration and mcmoran for about $9 billion. that deal was frowned upon at the time by many shareholders, and even more so now. one of the reasons why the stock has been down so dramatically is that it added assets in oil and gas, though copper certainly, which is a key, sara, has done nothing to help it. they control one of the largest copper mans or the largest in the world in indonesia, but jim bob moffett is a well known

figure. >> legend. >> in the exploration industry. >> he is one of the best geologists in the world. it was that copper deposit that put freeport on the map, co-founded the company. he is considered a pioneer and a legend. never talks that much. doesn't give an interview. you frequently heard from richard ackerson, who is the chairman. interesting to see. he has been at it with activists before. >> carl icahn owns about 8.6% of the company's shares. in early october they reduced the size of the board from 16 to 9 members, and then also undertook a review of -- strategic alternatives for that oil and gas business. some of which existed previous to that large acquisition i mentioned. most of which was taken on at a particularly inopportune time, about three years ago. >> it is an end of an era for

freepor freeport. >> shares of the kymerix are falling today. this is a case of high risk biotech investing. phase three of this drug did not meet late phase entry point. for chi domingumerix, this is a anti-viral drug, didn't meet the goals of the phase three trial. piper jaffray lowering the stock to $10 from $63. the company now expecting to figure out its path forward and basically figure out what was the difference between this trial and previous studies which looked positive. it has been a rocky road for chimerix.

the drcompany gained attention 2014 after becoming used for the compassionate use for 7-year-old josh hardy. in the fall of 2014 the drug was used experimentally for ebola. let's send it over to rick santelli for an update from the cme and the santelli exchange. hi, rick. >> ira harris is the first guest of the week, in between the holidays. when we travel for the holidays, some people take the interstate. we'll talk about inter and intra spread relationships with sovereign debt. when it comes to our rates moving to severely low levels over the last 18 months, relative value trade when bund yields moved under 10 basis points. is there another side of the mountain to that trade, not only with respect to the u.s. but to bunds as the quality comp

against the southern economies where you pointed out were 85 basis points. these things are out of whack. >> yes. the best credit in europe is the bund. why? everything else is pegged to the german credit card. if the germans determine that, hey, we don't want to support this anymore, they're the co-signer for every borrower. we know that sometimes you don't want to be the co-signer. 2016 is going to be a phenomenal year of volatility. not just the stock market. the stock market will be the tail. it will not be the dog. the ecb in europe is the dog. >> as you pointed out, the financial repression, all these central banking gains are not good for politics because politicians take the black eye on it. central bankers don't have to get elected. >> correct. exactly. >> let's move this a second. >> yes. forgetting what bund yields do, what about the southern economies?

will that move and change and widen? >> the only way there could be is if the germans ease up -- >> you think if the german credit card stays intact, tight spreads with the weaker southern economies will remain? >> absolutely. they will. but they'll have to meet the fiscal constraints of the germans, so it will be a key year for them. this has been going on for a while. the germans -- germany has a huge amount of savings. they have savers. savers are financially repressed by the policies of the ecb. that's the politics pushing back against merkel. everyone talks about the refugees, that's secondary issue. the primary is germans are getting squeezed day in and day out because of 2% growth and negative yields. when those savers show up at the ballot box that will be the turning point. >> that's the inter of rates. let's go intra. how is all of that, those issues going to affect u.s. rates?

>> everything is relative. sara always points out, i'm a currency trader for 38 years. everything is relative value. right now people are banking on this, that the united states will raise rates more. maybe not. because if europe can keep that pressure on the long end, it will keep the u.s. ten-year well behaved. we are coming to a critical juncture here again. for july of 2012, the 210 got down to 117.25. january of 2013, we got down to 117.25. we are here approaching right now at 1 point, 1 1/2 today. watch that 117.25. if that breaks, all hell will break loose. >> sara, back to you. >> i think i got a shout out from ira harris, thank you both. as 2015 draws to a close, cnbc breaking out the 2016 playbook, looking at ways you

can make money in the coming year. this hour we're looking at real estate. for that, here is diana olick. >> the housing market is coming off a good year but facing increasing challenges which could derail the game. mortgage rates will rise. thanks to the fed and improving economy. rising rates will hit first-time home buyers hardest, not just on the monthly payment but on qualifying for the loan. this group has been lagging the recovery, struggling to pay the rent which makes saving for that necessary down payment harder. speaking of rent, it won't let up. demand for rental housing is high and will only grow. developers have been churning out cheap urban buildings, but the new supply is not enough to cut into record high rents. a new play for 2016 may be more builders looking for the suburbs where more millennials are now heading. don't pet on a big surge in single family home building. housing starts did rise this

year but not by much. they're still well below historical norms and more delow demands. builders are cautious and struggling to get labor and land to produce more. supplies are tight for new and existing homes now and will likely tighten more in 2016. that is the biggest problem in the housing market right now, low supply pushing home prices ever higher and hurting affordability. we got a dismal number on november home sales last week, and a lot of folks blamed that on new mortgage regulations slowing things down. that was not the whole story not by far. without more supply 2016 will be one expensive year for housing. remember, a whom price recovery is not necessarily an overall housing recovery. sara? >> all right. we'll see what happens. i think we get pending home sales on tuesday. diana olick. >> wednesday. >> wednesday. thank you. when we come back, the

hottest ticket this holiday season, people are shelling out big bucks for events. the co-founder of seatgeek will talk about higher prices for ticket sales. bring your family and friends together

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the holidays are a hot time for online ticket sales, so what are the biggest price tags for us now? also aggregates other resellers, though not all, i guess, in terms of giving people marketplace they can access most often through their phone? >> absolutely. well over half of our sales are coming on people's phones. >> they are? what are they buying? >> sports games. you've got the nfl playoffs and the rose bowl and the other bowl games but you also have in new york, "hamilton" which is a phenomenon. it's often compared to "book of mormon" because of how popular it is, but that doesn't do it justice. tickets are about twice of what "book of mormon" tickets are. >> what are we talking, two

seats to "hamilton" for tonight? >> you're talking $600 per ticket just to get into the event. >> maybe tomorrow night. >> what's the wait time? you can get a ticket? you can pay that much i guess to get it day of. >> we aggregate from all the different sellers. so you'll be able to get a ticket today. you can purchase it in just a few taps on your smart phone and walk right into the event. >> how about adele? >> her tickets are quite expensive. madison square garden tickets are going for $400 to $500 apiece. >> $400 to $500. i could buy four tickets and forward them to other people going to a concert and even get paid? all this can be done through my phone? >> absolutely. once you buy a set of tickets on seat geek, you can forward it to friends. you don't have to worry about waiting at the gate to meet them. you can all enter separately and scan in on your smart phone.

>> the new york attorney general sent letters recently asking why they were selling bruce springsteen tickets when they didn't have them. >> there's some legitimate uses for speculative sales. we noticed the concerts people are listing tickets they do not have. one thing we've done with our listing tool is require a user to have the ticket before they list the ticket on seat geek. as a result, there can be -- >> can you check that though? >> absolutely. in order for you to list the ticket, you have to have it, so you upload the ticket to our system. >> how much of your revenue, percent your revenue is reselling as opposed to just listing other's resales? >> we launched the platform less than a month ago so the majority are still coming through the hundreds of sites we aggregate ticket through. >> will i get a decent idea for a particular event, even though

stub hub is not part of what you're showing? >> not only can you look at the seat geek map and see what the tickets are going for, but we go a step further. we tell you what you should list the ticket at. >> do you think one day you will be replaced by google? you're doing a job which in many, many industries google seeks to do. what defense do you have against that? >> we have a lot of things. we have these beautiful interactive stadium maps that we've built for thousands of menus. we have a score that ranks every single ticket from a score of 0 to 100. in order to understand what the value of a ticket is worth, you need years of data on what ticket prices have been worth for every single venue. it would be very hard for them to build that infrastructure from a standing -- >> who is the biggest competitor, ticket master or stub hub? >> stub hub. >> they're dominant, right, in the industry? >> they're a large company. but we feel like our new listing tool will put us in square

competition with them and we have the product to one day surpass them. >> russ, thanks for joining us. the co-founder of seat geek. "hamilton" is showing apparently. they've been dark for christmas. >> no stone unturned. >> we do it all, we provide everything. coming up "squawk alley," which will dig into those big holiday numbers from amazon. that's coming right up.

good morning. it is 8:00 a.m. in amazon headquarters in seattle, washington. 11:00 a.m. here on wall street. "squawk alley" is live. good monday morning. joining me for the hour is david here at post nine, thanks for stinging around. >> happy to be here.