the you keep all the money or keep it as an annuity in. >> you keep all the money, you don't want to be a predator of the state in case they don't have money to pay you back? in there like puerto rico want tonight, 7:00 p.m. eastern time, special event, jackpot, we break down the dos and don'ts if you actually want to win. we'll see. >> that does it for u.s. today. have a great day, everybody him see you tomorrow. [ music playing [ music playing ] >> good wednesday morning. welcome to ""squawk on the street."" at the new york stock exchange, pre marks trying to build on yesterday's late afternoon bounce a. 2350u things working in gold's favor, including trade data. europe is higher despite a weak industrial production number. oil is higher as well after just breaking 30 yesterday. our road map begins with oil data out of china presenting new

challenges for the u.s. energy industry. what you should be looking for next. >> four chairs were sliding in the pre market. but shares of gm are up. the fresh data just released by the auto makers. >> the story everyone is talking about today. that, of course, is the $1.5 billion lotto jackpot. you take the lump sum. what do you do with the money? the other of actually winning, of course, we got that all covered. stocks are opening higher after the nasdaq snapped the 8-day losing street. exports fell 1.4 in december. meantime, crude rebounding after prices fell yesterday. oil is out at 10:30 a.m. eastern. some saw it as a marker of some point. >> i look. if you look tick for tick, i mean, just gripped by this oil situation. it's so nutty. tick for tick, the moment that it bounced up from the $29 level. the s&p futures just flew and,

of course, a lot of the companies that do particularly badly if oil really goes up, we're a part of the leadership. this market is trading in lock step with ets. yes, oil is what matters. if oil were to go to 33, 34, i think you'd see the retailers and the restaurants need the market. that's completely insane. it is what has been happening. i mention, because people at home have to be confused t. answer is you have every right to be confused. it makes no sense. >> reuters had a pcs yesterday, there is no u.s. future on oil priced above 54. >> yeah the curve is really interesting here. i think the people, it's doning on people, it doesn't really matter. what really happened was opec broke up. okay. it was every country for itself. it did, the market became very unregulated. so, therefore, if are you a u.s. company and you've gotten low costs, you are just going to pump like mad, each right here now remember iran is going to come in, in the next month, with

two to $3 cost basis per oil. it's not greenfield, it's ready. it's there. i think a lot of this market is in prep for what's going to happen six weeks from now, which is iran is going to be pumping a massive amount more. we got figures out of mexico, my guys. you know the gulf of mexico is actually florida they're not pumping less. there are two big fields that have come on. chevron has got that, it's called the tubular field. i don't know if you are familiar with that one. so gulf of mexico could actually be up. >> amazing. why would they still be pumping? >> because these things were built four years ago. those wells take forever to come on. >> you keep going. even though you are losing money with every barrel you are pumping out? >> some costs. so i mean, it's going to be

flat. flat to down 2% if they can iraq late it at all. if you remember post-condo, chevron went if big. shell. shell has distinguished itself as being particularly stupid at this point. i mean, if you want to add the ones that are majors. >> we talk a lot about the large deal that they announce, not particularly opportune time. it does look likely to be voted favorably. >> you can't have both big capital budgets and get big dividends anymore. we know that but it is interesting to note that gulf of mexico is a real problem. >> meanwhile the national average, gas buddy says it could be $1.89 by sunday. california is looking at a 10 to 1520 percent decline, maybe in a week, they will be $3 in l.a. it's a big deal. >> it's a huge deal. i saw a company, burlington reported the coat factory?

>> yes, i'm aware. >> it shows you what happened, when you get cold weather, the stock just soars. that's what your hope is here. >> that i'll stabilizes, that we don't talk about it every day and then we begin to get some companies that recognize that gasoline being down is positive. it could happen. that's the holy braille for the bulls. it's also like the last straw. >> let's talk a little more broadly on that bounce yesterday, jim. pretty good volume. 3-1 positive. a couple days in a row ewe see this happen. does that mean we're in the bounce? >> we have the fewest bulls and the most bears since the market bottomed in november, 2011, when this increase came. sentiment in terms of the bulls in terms of people hating the market. the market is incredibly oversold. if oil were to go back to 29, our inventory number, all i am talking will mean nothing. >> you don't rule that out? >> it's hard to rule out, given

the fact have you people like carole hamm up from continental. very sanguine. very sanguine. >> how is that possible? he has been sanguine from 100 down? >> he came on my show, 80, he said he'd go right back to 100. i think the former mrs. hamm did quite well. >> she got in just under almost like a lottery. >> she hit powerful, didn't she? >> after tacks she is doing better. >> because of capital gain? i don't know. thanks taxable, right? i need to spend a weekend with bernie. >> there is absolutely a big correlation between when she's down and how on the other hand it continues to come on air. let's ask the ex-mrs. hamm what she thinks about oil prices. >> better to be lucky than good. it is absolutely the case that

when you listen to these oil people, they are so bullish. shell, once again, i bring up shell because i feel like picking on them. balls they have really distinguished themselves as not know whack they're doing as with el. >> meanwhile, gm, the auto maker raising their current year guidance, boosting the buyback, upping the dividend 6%. then there's ford a. special $1 billion dividend. the stocks falling on tear guidance for '16, especially regarding the north american operating margin, gym they see 9, 5 or higher, the outlook. mike jackson saying auto looks like they're plateauing. your peak auto thieves thesis is coming in. >> yeah, ford i can't believe that. things aren't that good. maybe flat earnings for the year. gm at least didn't say it upped

the buy back. they upped the album to 550. now 525. 575. quarterly dividend boost, supplement am one time ford. gm is doing better than ford. i do think we're peak auto and peak auto means once again if are you the fed, do you really want to go raise four times? because you could upset autos. the incentives are priced off the short rate. >> incentives are the fed. the fed wants to really. >> like saying things are sanguine. i don't like the oil market. then i think you will be hurting. you will regret you bought these stocks. >> but 17.5 million is in the a bad place to go down from the you go down a bit go i was looking at the csx release. they say things will be down. appreciably. meaning you get a earn

presidentage down. >> that stock has gone from this one, i'm talking about one to watch. >> that stock has plummeted in 30s to 23. let's see if you can build in the ideas that if somebody is doing a little better the year, you should buy the stock. that's really crucial. i don't know the answer. we will find out very quickly when they do the call. >> what will we find out from csx specifically? in there when you say 2016 will be worse than if 2022. that's the issue. i think a lot of the industrials will be like that. if you look at the csx release alone, you see this there is almost nothing that's going right with negative market trends projected for 2016 the earnings per share expected to be down. let's watch what happens with the stock that's already down substantially from 35 to 23. to see whether it can stop going down on an announcement that this is down. ford is flat to up. business is down, csx business

is up. gm the whole good, bad and other. >> okay. so let's see if they make a stand. >> there it is. >> the band is back together again. finally tonight is the night of the powerball lottery drawing t. record jackpot, cash value now larger than the cost of buying every possible combination you'd of course have a better chance of being struck by night i lightning. tonight we count down to the powerball drawing with a special event jackpot the richest lottery ever begins at 7:00 p.m. eastern time. we will have eric on later on. if you will et the computer draw the numbers, people tend to draw from a set of familiar numbers, birth date, anniversary, things like that. >> it shouldn't tell you?

i lost a fortune letting the computer do it. >> have you ever won the other way? >> this is like sandwich, chesapeake. i have been using the computer. it feels like freeport to me. it's petroleum. i'm talking ultra. >> how much are you buying at a time? you tweeted a $20 ticket the other day? >> we got a group thing going. today i was going to lay down 50. >> really? expecting the lottery to deliver alpha is a little hopeful. >> macys at 72 or macys another 76. powerball has a limit. can you only lose so much. some of these stocks they stop at zero. i have a powerball strategy. i'm using some of j.p. morgan's work and morgan stanley itself, taking goldman's outlook. costin was the number one guy, i'm trying to get his number. if we can get his number, we'll all play. >> how are you going to spend

it, jim? >> if i win? >> yeah. >> you'll never know, you'll never see me again. >> good-bye. >> mooib maybe buy some new tie, watches. i would give away immediately a huge chunk, i would be like, wow, that was just terrific. then i got my eyes on an island off the coast of seattle. it's really pretty. >> nice. >> really gorgeous. have my own island. >> not mercer island? >> no, it won't be like larry. >> not that far from vancouver? >> that will be my summer home. then i will buy a winter island off the coast. i got a place in mind. >> you got it already mapped out. >> the money i'm puts down on this thing. i have to. >> a plane to get you there and pack. >> my friends tom grabbed the shares in my box. he's a pilot. he's involved. >> yes. congratulations in advance. >> maybe i'm start a new team in st. louis. >> they deserve it.

when we come back, microsoft getting a lift courtesy of a wall street upgrade. we will get details on that. the pre mark up three day, the last time we did that, december 21 to the 23rd. not that long ago, although it feels like it. more "squawk on the street" post-9 in a minute. . .

♪ life. you never really know what's coming. life just... happens. just when you think you know where it's going

sfx: (ambulance sirens) it takes you someplace else. and that's why covered california is here. to help californians who need health insurance get it. so you'll be ready next time life happens. because it's more than just health care. it's life care. ♪ light piano today i saw a giant. it had no arms, but it welcomed me. (crow cawing) it had no heart, but it was alive. (train wheels on tracks) it had no mouth, but it spoke to me. it said, "rocky mountaineer: all aboard amazing".

oil prices trying to stabilize here, but of course inventories are on the way. our jackie deangelis at the 99 ex. hey, jackie. >> prices are off this morning's highs, traders telling me they're not surprised to see a little technical move higher here after we hit that inter-day low of 2993. this kind of to be expected. we tried to rally yesterday morning an couldn't hold onto it. the numbers will be the dee, they will be the swing factor a. mear $4 million barrel draw down. apparently it's bullish on its face. when we looked into that report. you sa you the distill lat and gasoline numbers really built. this is the second week in a row. we are refining, turning oil into product. it's silting around in storm. that's actually a bearish factor. it will be important to see what the department of energy does

say at 10:30. china crude imports, they hit a record high, prices are so cheap, china is bringing oil in. at the same time, we said the china numbers will be very important. traders looking at that export number. that's bullish here as well. so many different factors to consider today. let's see what the doe says at 10:30. let's not get ahead of ourselves. >> thank you, we covered this in the a block. those numbers will be tee today. >> when you speak about storm, nordic american tanker had a 43% dividend. we were looking for 48 cents. why are the numbers so good? because there is no another place to put oil. you may look at inventories on a brophy snapshot. the largest fleet of oil tankers in the world. >> i thought a lot were already stored up. the tankers are taken up. >> whatever you got left, i

guess. >> >> so this is where you put it. the export numbers, they are giving that away they are taking market share away from the saudis. good luck. >> meantime, a lot of discussion about the number of jobs that have been lost since the peak in '14. time says it's about a quarter million. jobs, bp this week, petro voss and others as well. >> it's difficult, we were talking about the service numbers are good. you wonder how much since gas loan has come down. it's concentrated in certain states. fx, the federal reserve puts out fabulous numbers. the numbers around that bad. so you keep thinking, it's almost as if, wow, every time they lose a job, they gain a job. >> that's texas. not necessarily the resource business. the oil billions or is it? >> i mention texas. >> are they breaking it down by industry there? in there the net price.

>> they have a lot going on in other areas including high-technology. >> that's the state most impacted like penn's square. >> a somewhat different economy. houston is still houston. >> lousiana has fantastic employment. california a big producer. forth dakota is just not a lot of people there. again, remember, there is 40 states where there is literally nothing doing in oil. there wasn't. i'm including wisconsin because they're not really. they're focused much more on green bay. mike would not take this week. >> really? >> interesting. we'll see what speaker ryan has to say about that. when we come back, cramer's mad dash. we count down on the opening bell. one more look at futures here. with these flat gains the last couple of days, it's now the worst month since august. back in a minute. turns romantic why pause to take a pill?

or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis and a $200 savings card.

. time for a mad dash. eight minutes before the opening bell. we will hit two stocks today, both have express in their name. >> that is very good. >> we will start, however, with american express. goldman sachs, david, a great supporter of american express, today lowers the hammer. cuts number, say a gigantic decline from 2015, frankly. remember this is down number, 2015, from 690 to 545.

20 percent by low 2015. they under estimated the impact of the costco split t. company let you believe it was not that important. >> since then the company said many times over it wasn't economic for to us do it. but it was a material number. the thing about americanic e express, they're saying the company doesn't want to do anything. they're sanguine. >> what does it take to get america e american express its mojo back? it lost it a long time. >> they decide, you know what, we've won powerball. we split it. they're gone. it would take those two guys to win powerball before i would buy this one or also if you don't win powerball say, hey, i'm done. let's talk about another emerging market. something unprecedented. >> all right. gore give my orange thing. >> anthem literally in a public fight is saying that american

express, scripps, a lot of express issuesch owes them $3 billion saying they are being overcharged. >> j.p. morgan health care conference. >> this is unprecedented. they are arguing in the press. they're negotiating. >> the ppms are under pressure. walgreens valium deal was meant to potentially get rid of the middle man. the pharmacy manager. here, express by the way. no shortage of rumors. the casino runs a very aggressive guy. >> a makeover target. today it's anthem versus american express. it feels. >> like anthem versus american express scripts. >> at express scripts, it feels like anthem is mr. t. when it asks for a prediction about express scripts.

pain! >> all right. >> pain! >> we had plenty of that in the broader market of late. today, though, looks like some relief. we are back after this. .

here at td ameritrade, they work hard. wow, that was random. random? no. it's all about understanding patterns. like the mail guy at 3:12pm every day or jerry getting dumped every third tuesday. jerry: every third tuesday. we have pattern recognition technology on any chart plus over 300 customizable studies to help you anticipate potential price movement.

there's no way to predict that. td ameritrade.

>> you are watching cnbc's "squawk on the street." opening bell in two minutes on this wednesday morning as the pre market tries to build on that rally we got yesterday. the last couple of days, gym i jim, a lot of large cap upzbradz, apple, intel, coke, sienna today microsoft. >> it's good you mention this, there is a lot of people feel there is genuine value, the upgrade they should have upgraded a long time a go. coca-cola, things are much better. they tell a good story. i like the partners with monster. monster said good things about china, people said it may not be enough. there is a lot of big cap companies, hey, listen, totally

discounted. you wake up, met life is spinning off the retail him some of these big cap companies. they have abilities to do things. yes, it's a very good point that people are saying, intel, a bunch of updpradz. these will be big test cases of the earnings season. the too cheap versus the not as great earnings as we thought. >> you look at the mark, yesterday looking at wti, looking up at the time. a reverse am an hour-and-a-half later. the market followed. now it did tack a bit for the rest of the day. though it clearly was off the highs that we had in the s&p when wti was up. are we still playing off oil? >> it is up. you don't need anything else. really, it's astoundingly crazy that all that matters is you knew that when oil did not stay below 30 and bounce back, the s&p was going to war. now we're very oversold. so jus watch it. 10:30. jackie chan was going to

determine. >> it doesn't change your long-term net negative view. >> you need so see china better. you need to see politician get out of our faces. you need to see more people like the federal reserve like steve leishman talked about, say, hey, listen. we got to wait. you can't have four. >> certainly not what laquer said this morning. there is more to come on the fed front. the opening bell, down here, it's frozen food company nomad foods celebrating its listing. over the nasdaq. a professional bull riders organization celebrating ten years in madison square garden. >> can they ride fares? >> you can see up on the platform here. of course, he joined us not long ago, one of the founders of the special acquisition course. >> the giant from the hedge fund industry very large, also

involved in these is up as this one. >> two big men so to speak in the world of business and finance. >> i think we should mention it. martin created this new company with rubbermade, the stock does what every single does best, goes down. even though the value creation is extraordinary. no one wants to hear about that. >> i think that's wrong, too. to that point, the week, the 30-plus billion dollar deal under shire buying back salta. there is a look at jarrden. it has rebounded. it is very important to the keep an eye on the performances we said so many times in a year that many will not be last year was given to the $5 trillion in mna, the deals over 50 billion. >> you know these bankers. someone comes with a deem r. the

acquirers saying hey, listen, i think my stock will get hammered on that? >> they think twice about it. in an environment where you think you will be rewarded. you are more likely to do the deem. regardless of whether the merits are the same, you are looking for a positive response from your shareholder base. when that is no longer happening, you may think twice about it. your board may think twice about it, itself. >> that said, a market like this, jim, does present some opportunities, perhaps we are never able to get there. they want to get an adproemt on price. maybe something you were seeking if you were an enquirer has come down a lot. maybe you now have an opportunity to reengage. >> i have the ceo of do you the 48th anniversary at dow. i asked him point blank whether it would be higher. i think the answer is -- >> what did he say? >> now you talk about the long term. the long term does matter but

the problem here is there have been a series of incredible markets about di pont. actual articles about who wrecked dupont. fill up the enq4er, which is now charity has been about who destroyed this great american company? and the press for dupont i think has pulled down. >> you. >> in the ag business. >> speaking of big acquisitions and the integration thereof. ge cutting 6500 jobs, mostly at former alsome units. stocks getting a little action today. >> ge is doing so many things right. it's kind of crazy. they break off. they get denied to sell the appliances. so they get the breakup date. now they will sell the appliances for more. sometimes it rains, it pours. it really is. it's going jeff's way right now. >> stock is down almost 7% this year. not that everything else isn't. >> biggest, had a great year last year. >> i just think that they have

done a lot of things right. it's worth noting. just worth noting. >> all right. you can argue bullish news on china from starbucks yesterday. today yum's trying to back that up. >> i thought it was important. kfc is good. you talk about plus 5. some say they were muted. i think that's wrong. i think the spin-off will create value. stock was up 72 last night when they first dit did it. it didn't beat the chess. i think it shows you, things are getting better there. that's a buy. i would point out, be i the way, if you like what howard schultz said about china, he's touching down in india today. i think you will see a lot of onslaught of great news out of india. a lot of good things going there. it will be t. which is going to be good. i think holpe could be good. watch a lot of good headlines out of starbucks. howard schultz there. >> seem to be more populous than

china. amazing story. got some initiations today. an initiate on sales force. their argument is that their industry standards are quickly replacing those of aap an oracle. >> they did a great job, first to 3w8. 9 billion in examiner prize. always in the back of people's minds is will microsoft get to that 18 billion cloud by merging the sales force? i think mark benioff is not done. sales force is doing incredibly well. bill mcdermott has done great things. or cam, the stock is not doing much. sales force is the king and mark benioff's sales force extravaganza, apparently, taking up more hotel rooms than the super bowl. >> i don't doubt it. last year the g force. >> yeah, it was great.

it's really pretty amazing. the fu fighters. you go to see them. benioff has everybody. there was an incredible interview with the ceo of youtube that i just love. jessica alba by the way, a become dollar club, in terms of her cosmetics company. it's a display of capitalism and then of charity because of the benioff hospital where i spent some time, because it is incredible. >> jessica alba. >> has a lot going for her. >> i don't know what you are talking about. speaking of movie stars, so to speak, time warner shares were up yet again. sort of refresh. it was last thursday we first reported on the activists in time warner. it was nothing more than that. i did the story. it's been followed, though, by a series of stories in various place, particularly here in the new york area and the new york post. which, of course, it is worth noting by the controlled talks. there is nothing really more to report here. however, despite what may seem

to be contrary to that. there is still chatter. there has not been new developments. as i reported telt. jeff buckus, as he does every year, he was visiting large shareholders, we'll see what, if anything, develops here. is hbo valuable property? of course. is there conceivably interest in it were it ever to be spun? yeah. probably so. will that ever happen? who knows? will there be a proxy fight? very much unclear? is carl icon in the stock only to get out? >> scott wapner did tweet today, carl icon told me he owns nothing gtx. >> he owns nothing. well, he could own it on swap. the fact is, at some point he may have owned some and may have gotten rid of it. which is why we told you about the squad chatter. i wanted to point it out.

these stories tend to build into become stories when they're not. before they had an opportunity to actually become a story. >> how does that happen? >> i don't know. >> like the talks with checkpoint, two companies that in israel that the marker, the jerusalem paper at one time had an investment is is reporting they could be in talks? cyber software, hot business, cyber are a good company. both israel defense force started. our producer will be coming out with a fabulous book i'm reading about the israeli defense force the companies including checkpoint. it's a natural tie. it's hard to refuse. that's why that stock is up so much much. that's another press report. >> you got to be careful. that's oum. we'll certainly tell you written there is anything substantive that occurs.

>> that stock is worth about 72. let's talk about et and williams. it sent the stocks down fairly sharply. they were down a while, a lot more than they ended the day, because of the fall on wti or oil overall, but they're down again today. i can only reiterate what i reported yesterday, which despite chatter around the steam the idea of restructuring programs being desired, they filed an s4 last night. worth tiking a look at. at least talk about some of the difficulties in dealing with lower oil prices. but they're down again. williams has done a great deal. down to $15.53, remember the consideration is $8 bucks a share in cash. now more than 50% of the consideration. not the implied overall value of the deal given the stock as well a porpgs of it. nonetheless, 6 billion off a mark cap that is now 11.6 billion go they do have that loan commitment? >> yeah. contract's tight. but the market's not believing i

don't remember thyaerm /* /- anymore that that will guilty get done. >> we continue to watch it closely. a good story on that. our charitable trust bought a position, it's been wrong. that stock is the dropdown. >> moving a little higher now. >> again, kind of felt they would separate at a certain point. >> plains all american, yesterday, they declared the dividend. 70% consistent buchlgs i thought this was going to signify something positive. j.p. morgan steepled down today. nobody believes anything other than the fact that rich people are getting killed. >> exxon and chevron, let's get to bob on the floor. >> we got commodities and other kind of materials and oil leading the way. that's what you want. that's what moves the marks

these days. let's look at the global markets. shanghai dropped 2 nevada%. back to august, we had good import export numbers. doesn't matter nikkei was up. the yen was down a little bit here. japan has a terrible start to the year. first up session in a while. germany gapped up. is off the highs. still on the upside there is a rally. durango, americans in you were 82. look at that. up 5% t. big oil names they're all up 3 or 4%. here in the u.s., same situation. we got a rally led by energy stocks. materials stocks, financial and tech stocks, for a change, consumer staples are lagging. a lot of back and forth chatter with the traders yesterday about the commodity stocks. a lot of shocks, big names down

for the day how much could they drop so much? you can have good assets. it depends on your debt levels. we put up freeport for you. closest to $21 billion in debt. but their cash flow is $4 billion. they got interest expenses of $600 million. you can see they have enough cash flow. as oil keeps dropping. that gets tougher. people have stress assumptions very bearish. morningstar did one a few weeks ago. they are assuming copper would be down a a while and based on those numbers. they said we see little remaining value for shareholders as a result of the heavy debt burden. now if you change that, you raise the pricingings to mid-$2. two to $70 for oil. you get more values for shareholders. everyone is baking bearish assumption himself. that's why the stocks are dropping. it depends where you are headed in commodities int next few

days. let's talk about auto parts. they came out with below consensus growth. streets moved ahead of that. some of the predators not moving. finally, want to know, penn virginia, a small engel ford companies, delisted by the new york stock exchange, now trading on the pink sheets below a dollar for 30 days. there are a lot of companies out there, guy, below a dollar right now. particularly in the evil ford names. i expect some will be delisted soon. >> let's check in on rick santelli. good morning, rick. >> good morning. rates are up last year at 227 and 10s. look at yesterday's chart. look at the spike. yesterday was 208. of course, we need to may attention to that as is slowed down rate trade continues in 2016. if you look here today chart, can you see what i mean.

let's switch gears. you can see on a year-to-date charts, they're turning up a bit. not a big deal. they are holding 50 basis points. >> that is the line traders are paying closest attention to on a closing yield basis. if we look at what's going on on the yield curve and continue to remember that a flattening yield curve seems to be associated, of course, with the snuging fed and flattening could remain, even on rates moved lower. which is the case of late, 10s minus 2s aroundt the flattest since july, 2012. they're certainly, very, very close. dollar index 84 to date, the highest close in the dollar index is 9940, 100. >> that it was 5th of january. 100 is what investors are paying attention to. the dollars you see going back to the spring of 2010. one thing hurting it a bit is the dollar yen.

you see on this chart. pay very close attention to 117 to 120 is the ride range. back to you. >> we'll see you in a bit. rick santelli. when we come back the nfl headed back to los angeles. our jane wells is in houston, the site of the league owner's meeting, having worked late last night. hey, jane. >> reporter: hey, charm, they're coming back to l.a. is there a fan base there from a business perspective? it may not matter. with powerball over a billion dollars, i start asking rich people if they're playing. we'll have that after the break. i know you're my financial advisor, but are you gonna bring up that stock again? well you need to think about selling some of it. my dad gave me those shares, you know. he ran that company. i get it.

but you know i think you own too much. gotta manage your risk. and you've gotta switch to decaf. an honest opinion, even if you disagree. with 13,000 financial advisors, it's how edward jones makes sense of investing.

i'i like to think of myself as more of a control... enthusiast. mmm, a perfect 177-degrees. and that's why this road warrior rents from national. i can bypass the counter and go straight to my car.

and i don't have to talk to any humans, unless i want to. and i don't. and national lets me choose any car in the aisle. control. it's so, what's the word?... sexy. go national. go like a pro. >> it's been two decades since an nfl franchise called slaepgs home. that's about to change. nfl owners approving the st. louis rams move to l.a. at a special meeting in houston. our jane wells is in that city with more. hi jane. >> reporter: hi carl. still a lot to be decided. it was announced just as the state of the union was starting t. rams will return to l.a.

own were sam kroenke congratulations by owners, chargers owner lost their bid to build a stadium together. instead, kroenke will fund a massive glitzy $2 billion complex in englewood t. charge verse the option to join him there. >> we have been at this for over 20 years. we felt we needed to have the kind of stadium and kind of project that had the vision, that had the facilities that would really bring a new kind of fan experience to the nfl and to los angeles. >> i don't like it because sam kroenke is hurting everybody and, and people are not nice to each other. >> oh. fans in st. louis have been furious with kroenke, does l.a. have the appetite for one or two teams? >> ultimately, it may not matter

if the nfl ultimate end game is to have a showcase facility in the second largest market in america, where they can have super bowls every five years. >> raiders! >> people were expressing themselves outside the meeting. inside, bob eiger led the pitch for carson, hoped to be retiring before disney, so before the decision came down, i light heartedly asked him about a retirement plan. are you going to play powerball? >> i'm plang powerball. >> who knows if he means the real powerball or the kind of billionaire nfl powerball that was going on here yesterday. he lost that one. back to you. >> jane. great reporting last night a. difficult story to get a handle on. our jane wells if houston. jim, you know this world pretty well actually in smr yeah, this is tv rights. i once was talking to some of the ownership of the eagles.

they're fabulous guys. these are pieces of fine art. that's the way you have to look at it. there is a limited number. people say when are they going to cap out? the answer is they don't make anymore. it has great scarcity value. that's what you have to do as this one would immediately have a fantastic scarcity value griffin it is. those who think that nfl's peak are not looking at the fine market. >> that is the analog even with peter king writing letters to players saying you got to take care of your became the. the behavior of the players, penalty, controversies. >> it's not perfect. >> perfect or burfict. >> that could bring back a lot of revenue by giving it to the penalties, the fines, look. i remain a stalwart of the nfl in hockey. i think they actually encourage

fighting and ultimate fighting. they're trying to kill each other. in boxing, it's a legalized assassination. here's a game trying its best t. guys are too fast and collisions happen i wish i had an answer. but i am not abandoning the nfl. i think it's still great, if you have a franchise, what a tv business it is. you know, i question whether you can pay too much for the tv rights, david. like on a monday fight. >> certainly that's the fight around thursdays is heating umm. that's for sure. we get stock trading with jim. we will talk more about this. the market is up 22 points. don't go away. .

time for cramer in stop trading. >> these are beleaguered want news. look at intuitive surgical. it's a remarkable since the da vinci machine. anyone that seen it work know it saves the system a lot of money. there are times people fell it didn't have its mojo. it is so back. it's incredible. that's good news. >> what's on tonight? >> i thought quintiles, these do the testing. it's been a remarkable business.

tom pike is an incredible executive. this is a deem, they took it private. made it better. you made a lot of money i want to do some happy, try to get you 10% happier. it happens to be the name of a book by that. >> i can't at all into buddhaism and stuff, meditation. >> i meditate. >> we talked about that. >> i meditate. >> what time is it? it's time to stands. watch. >> you look into the black hole on your wrist. >> time to say above 100? >> this is apple should be above 100. everyone should get these. >> it is hanging in there at 155. >> we are getting, during the break, we were talking about this, dom chew with breaking news on sun edison. >> this hedge funds david tapper and his appaloosa hedge funds

are suing, providing a lawsuit against sun edison, the solar energy company saying they want to put at least a halt to the proposed deal is for one of sun edison's terra form power company to again to hal the deal, terra form power, which is at least affiliated with sun edison is trying to take over. they have been solar. appaloosa says they want to halt the deals to determine whether or not this will be good for shareholders. remember terra form power is a company that does put into place solar assets to generate power and what not. sun edison is a solar company that develops these assets. david tempers appaloosa looking to get the courts to step in to halt terra form power's vivid solar. we will bring you more details. for right now, those are the core findings we see. back over to you, guys. >> so it's a situation at sun edison for some time now.

boy, they did the bridge too far with that last deal financing. >> jim, we'll see you tonight. "mad money" 6:00 eastern time. >> then i'm done. >> powerball. >> e-mail us. >> stay in touch. >> when we come back, powerball fever. we'll talk with someone who jim is about to do, has won a multi-million dollar jackpot, what would he do if he won all the money tonight? dow is up 42.

in new york state, we believe tomorrow starts today.

all across the state the economy is growing, with creative new business incentives, the lowest taxes in decades, and university partnerships, attracting the talent and companies of tomorrow. like in utica, where a new kind of workforce is being trained.

. >> good wednesday morning, welcome back to "squawk on the street." 23 are at the new york stock exchange. marks go in for three days up. we haven't done that since before christmas. a lot is going to be determined by oil inventories in half an hour, crude is up about three-and-a-half percent. >> that's the roadman for the next 60 minutes on cnbc. you saw oil bouncing back. up $32 a barrel. we will see if there are buying opportunities in the sector. >> plus is 2016 your digital ads

will outpace television? one analyst thinks so. >> tonight, somebody could be $1.5 billion richer. hear from one man that won the lottery in 2012 to find out what it's really like. >> let's start with the stockmarket. positive territory this morning t. dow is up 49 points, oil prices continue to rebound above 3 percent ahead of that data. our volatility levels calm down after the worst opening ever. let's look at the derivative strategy. edmond, good to see you in person. with the oil rising, china putting out better economic data. is the coast clear? >> far from it. sarah. let's be honest. the chinese situation, these are both long-term stories. but what i would say is maybe we could focus back on the number also. rather than the panic fears that

we sort of attract. why do people care about the chinese stockmarket. i don't understand. i think we overrate that. we are actually poised. if you look at the good technical levels. upside in the u.s. and european stock markets from here. >> they care about the chinese economy and currency as a proxy to the chinese economy. you do say in the longer run here for 2016, every six months or so, we will get a draw down in stocks? >> yes, i think that's right, sarah. what we expect this year is to see much higher volatility on average than last year. why do i say that? we have a lot of key events, obviously the whole story about china. we have a lot of fog over where the economic growth is. where the reforms stand. secondly the whole commodity complex is a very big question. does it hit the two level again? do we get the two hand him or do we get sa geopolitical crisis on the horizon? that is a big question. >> we have eric lee on the latter point about oil.

you and your team, ed morris did say almost a year ago that the $20 per barrel region was possible. people thought it was nuts at the time. we saw 29 yesterday. will we see it again? >> we could well do. so i mean, i think it's important to look at the physical fundamental apples as well as the flow factors. while i think there is a wide recognition these levels aren't sustainable over a longer period of time, suppliers are hosting so much t. first half of the year, there will be a lot more. for now i think it will be hard for long to join the mark. you could see moves back into the 2s again. >> eric, what has been fascinating, week after week, month after month, is to see guys and girls like you come on to the show. it's your job to explain why we are on energy and kind of logically go through and argue what's happening. stifel nicolaus had a suggestion out today, it might prove useful to some people. they're arguing, maybe oil was just a bubble. the burst.

it went up. it comes down. and bubbles take a very long time to work tear way through the system. does that help you at all in explaining what's going on there? and if that's the case, why did we go so high in the first place? >> yeah no. that's a great question. i think it will be a few more years until we have the answer to that question. it depends on what you mean by bubble. i think what we have seen is a massive structural change in oil marks, due to a technological jump, that was not predictable. that was shale. right. if you ask me the 2000s were a story of massive commodity intensive crest in china. they were industrializing extremely quickly. that sort of period is over in our view suddenly this china. so it's a much more condensed less commodity intensive growth in terms of the emerging market growth story. when you have oil prices in the

100 dollar level. i think that also made sense because there was not necessarily yet a good intake we had to supply the market. other than expensive forms and people resources. and that expansion ary phase, you needed high prices to ration oil demands. and also i guess it would have dragged on the economy. shale comes in. you have now this sort of collapse of a change in structure. on the other hand, i don't necessarily call it that. >> evan, let me change the subject. you were asking the question, why are people reacting to what's going on in the chinese stock market. they have a possible explanation, it's the central banks are losing their credible t. people's bank of china is unable to control the situation in china, they argue, the european central bank is unable

to stimulate lending in the euro zone and here the feds may be unable to raise interest rates it promised to do. if that is true. and that is central the lack of central bank credibility, where does that take us? >> well, i think that's a freight point, simon. what i would say is i think maybe that's a little too pessimistic. i don't think they are doing that badly a job. you have to understand with a chinese economy, we are going through a profound shift, a way a away from consumer led economy as we have in the western world. when you talk about 1.4 billion people, it is going to take some doing. there will be bumps on the road. >> that wasn't the view, the view was they'd hold the line on the currency. >> but they're not holding the line. >> they're not taking one for the team like they've done so many times before. >> exactly. you though who is going to have to do that, simon? the feds. the feds is defacto the zbloebl

global central bank. unfortunately, i think it will devalue further. china needs it. >> that means more pain for u.s. industrials. >> very quickly. if are you a stock investor here. what's the device? do you go to consumer stables, given you are expecting the volatility to stay high? >> i go for long-term strategic growth. two sectors. technology, particularly software services and cloud computing companies and secondly, health care, because i think people have the pressure of pharmaceutical prices in the u.s. it's on its way up. >> long-term story. thank you for joining us. good to see you. and eric lee on the oil story. >> still watching this sun edison story. let's get back to domenic chu at hq. >> sun edison shares did get halted twice for volatility here on those reports that we're getting a third halt for sun edison shares on the upside.

they did fall near their lows today. on the heels of appaloosa hedge funds saying they wanted to sue sun edson to halt a deal to buy vivant sol lard and those particular headlines caused a drop in sun edison, another drop in sun edison, there were two halts. it went up a little bit and is now halted again, so three different halts right now, shares did halt at down 11%, $2.68 the last trade we've seen there. that was about 10:08 this morning. we will expect to see more volatility in sun edison on the heels of these headlines. back over to you. >> thank you very much. in the meantime, it's a tale of two autos this morning. gm in the green after raising its dividend and boosting its earnings projection for the year. meanwhile, ford's i don't think disappointing investors. phil lebeau is live in detroit with more on that. good morning, phil.

>> reporter: good morning, simon. we'll talk nor about ford in a little bit. let's get to the news. general motors, in the last hour, we talked with ceo mary barra. they are coming in at a range of 525 to 575 a share. an increase of 25 cents per share. we should point out the analyst consensus this morning was for 543 a shares. shares of gm moving higher. the stock buy back program is going to increase by $4 billion. bring it up to a total of 9 being. they will be extending that buy back by 2017. general motors is increasing the dividend, that will raise it up. with regard to the strength of the business. we talk about north america with good reason for record sales. china is general motors largest market. mary barra knows there are a lot of concerns. here's what she said about the

outlook in china. >> last year when the team saw the volatility and the changes coming, they quickly looked at how to optimize revenue. it will be across the board. there are many enablers we can seize from a china perspective. >> that's the story with general motors. new let's talk about ford. shares of ford under pressure today. the company yesterday afternoon issuing a special one-time $1 billion dividend. that supplemental dividend comes out to 25 cents a share. be i the way, it's 2016, profit outlook, expected to come in the high end between 10 and $11 billion. guys, the reason the shares are under pressure today is because some analysts looked at that said that's nice. we should point out we seen a couple analyst notes saying hold on. don't get ahead of ourselves. nonetheless, shares are under pressure today. definitely the tale of two auto makers going in different directions this morning. back to you.

>> all right. thank you very much. our phil lebeau today. tonight, someone could be $1.5 billion richer. it is the big jackpot that could potentially go to one winner. how do you increase your chances of winning an winning the whole thing? we will talk about that in just a moment. >

. >> it is a record breaking jackpot, $1.5 billion him tonight is your chance to win. how do you increase your odds? we are live in new york with

that story. hey, eric. >> reporter: how are you doing, carl? obviously, we know the numbers that get drawn are totally random. don't let anybody tell you the strategy. there is a strategy for sure about picking numbers you won't have to share your prizes, because there are a lot of people who do at lost of the same things. ten years ago, 110 people all used the same for kunis cookie numbers and shared the same powerball prize. don't be somebody that has to share your prize with 100 other people. rely on these forms. don't use the computer generated quick picks. pick your numbers from here. don't pick lucky numbers. any number less than 12, people use it for their birthdays, less than 21, people use it for birthdays, pick boring numbers, uninteresting numbers, like 34, 46. go with the 13 because it's unlucky. while we can't control or figure out what might happen tonight,

you can control a way to reduce your volatility and increase your expected value so you don't have to share your prize with other people. simon is on set today, i want to point out, america has been running lotteries before we even became a country. the federal government and the state colonial governments, they ran lotteries to raise money in the revolutionary war to beat the british. think of that. maybe simon is picking numbers. but i'll send it back to you, carl. >> it's your patriotic duty then. thank you very much. be sure to tune in tonight. jackpot the richest lottery ever. we will break down the dos and don'ted, if you win. why winning may not be as great as it seems, give you a sense of the company you would keep with your new found wealth. that's tonight on cnbc. >> some of us around the table are setting up foundations if they win tonight. >> will 2016 be the year when digital advertising outpaces

television? one analyst says yes, he is telling us which stocks could benefit from that shift. plus the financial sector in correction territory. down almost 10% from the recent 52-week high. so what is ahead on this, the eve of the banks beginning to report? more on that after this break.

. >> welcome back. let's take a look at shares from sun edison. they have reopened. i believe they are up a bit from the lows. still down, just to refresh, appaloosa management, a large investor in terra form power, that is a yieldco is that powers the region that it operates. he's charging they have been overpaying for assets. the setup in quotes they've had obviously conflicts. previously, they've requested documents from sun edison related to a boardroom shakeup there. that was according to regulatory

filing. that is pressuring shares of sun edison again, the appaloosa management the reasons for that. a number of big holders, including david einhorn, of course. it has not been a good run. simon. >> meantime, banks were supposed to be a proprietary spot this year, what, with the feds raising rates. so what will the earnings season tell us when we kick off with the big banks tomorrow. >> hey, simon. we have to get over the fourth quarter hurdle. googen heim reports getting better, it ain't great, put the sent imt squarely on. the biggest issue is the price of oil and the exposure that a lot of these banks have to oil due to companies they financech each bank measures it a little bit differently. here's what we know so far. it's not necessarily apples to apples. the banc of america said it has $22 billion in energy that its funded. j.p. morgan has 43 billion in total energy exposure. city has said it will set aside

some $400 million in reserves to cover loan losses, as of december, wells fargo, ceo, told us it's 2 percent of its portfolio. the majority of the debt is still high grade. despite the whipsaw action in energy and that rate hike, traileding activity is still slumping. j.p. morgan said two weeks into the quarter a. seasonal decline of 15% would be normal. analysts estimates were too high. it's safe to say now estimates are only expectingwild mild growth revenue. costs are expected to fall by more than 10 percent. >> that will help profits. so far as the estimates go. bmoa, wells fargo is the most immune to the various head winds t. wild card guidance is the net effect of december's rate hike. on the one hand, banks will earn more in interest. other than, it comes at a time

when credit quality is as good as it is ever going to get. take a look at this. this is the rate of consumer default. it hit an all time low in the second quarter and it has begun ticking up just slightly. commercial loans seeing the fewest defaults in nearly a decade t. fear is, once you hit these he was, they can only go up especially if that gets more expensive. we will see if that die namic played out in the fourth quarter or it's waiting in the wings. >> there is a lot to that. do you think your risk is on the downside? >> i think to this quarter the risks are to the downside. we will see how consumers react to interest rates and whether the demand can still match the price of that debt. >> a busy week for you. i have an early night. there are many now suggesting that digital advertising will exceed the spends on television advertising this year. certainly, that's what a new survey from cowan is suggesting this morning. john blackledge joins us, a

senior internet analyst of cowan, john, this is based on a survey then, walk us through what you found here. >> great. yes, we put on our ad outlook. it including u.s. ad buyers. this is the fourth year we've done it. the big thing is what the ad buyer said is digital advertising will pick up 6% of total ad budget. tv will lose 5% of share. 90% of the respondents said the shifts to spend from tv to digital will accelerate. we have digital advertising surpassing tv advertising in the united states this year for the first time t. other key lights were, number two, we're more bullish on digital. digital growth react sell rated last year 21% growth, versus 16% growth in 2014, driven by this shift. this tv shift is happening. now it's accelerating. also, just driven by kind of more consumption on mobile

devices and digital channels are higher and more measurable than the traditional channels, lastly, kind of what's driving digital growth. it's really social and digital video. so, the ad buyers are saying that social will take up about 3% share, within the digital bucket and video, digital video will pick up 2% share in the digital buck this year. with at the expense of display advertising. it's not surprising. the social networks are rising in terms of consumption and also rising consumption of digital video. >> even if you look at the figures, if you add together the revenue expectation for google and facebook for this year, it's $94 become. which exceeds the 80 billion that's spent on tv advertising. so in a sense, those in the market are already expecting it. i guess the question is, with facebook up 30% over the last year, with google up 50% over the last year, what does this

now mean to investors? where do we go from here? >> yeah, it means, stick with the winners, stick with facebook and google. for facebook, if you include instagram, they're obviously dominant in social, dominant in mobile. they're increasingly going to be a big player in digital video. we have falesbook, if you include instagram the world wide advertising going from 10% in 2015 and 25% in 2020. for alphabet or google, stick with them, google is obviously dominant in search and youtube, we saw the youtube forecast long term in this report t. reason being, it's in a great secular position with this shift from tv to digital and, yeah. >> we have to go. we got breaking news, it's good to see you. thank you very much for your time. >> thank you. >> john blackledge joining us there from cowen. >> good news regarding general electric, a decision to move the company out of connecticut,

where it's been for quite some time t. blaun u boston grown announced ge selected boston for its global headquarters. >> that according to an official familiar with the process. again, this is the boston globe quoting an official familiar "process. company executives called the governor and mayor, to say a form am announcement will come thursday. again, that according to boston globe. of course, there has been a great deal of focus on this move, symbolic in some ways. not a huge boom for whoever gets it in terms of jobs. remember, we're talking headquarters, not manufacturing facilities or things of that nature, where there are a lot more employees. that said, though, certainly a black eye for the state of connecticut. ge upset about tax policy there. >> very hard to get to new york. >> very hard. >> if you look to the real estate market in connecticut. >> that already was relatively unhealthy on the basis they might move. >> yeah, what's interesting. i don't know the tax policy in the state of massachusetts or what deals may be associated with this for ge, but again, it

does appear, at least according to boston globe, the company will move its global headquarters from fairfield in connecticut to boston, massachusetts. >> wow! >> crazy. >> all right. when we come back, oil bouncing back today. it's still down about 15% since the beginning of the year ahead of key inventory data. we'll report to you at 10:30 when it breaks. wti crude, 3124, coming back from dipping below 30 yesterday. "squawk on the street" will be right back.

iall across the state belthe economy is growing,day. with creative new business incentives, and the lowest taxes in decades, attracting the talent and companies of tomorrow. like in the hudson valley, with world class biotech. and on long island, where great universities are creating next generation technologies. let us help grow your company's tomorrow, today at business.ny.gov ♪ ♪ those who define sophistication stand out. those who dare to redefine it stand apart. the all-new lexus rx and rx hybrid. never has luxury been this expressive. this is the pursuit of perfection.

>> welcome back to "squawk in the street." i'm reporting from the nynex. the department of energy out with its crude inventory report, divergeing from the api last night. 234,000 a massive build in gasoline. 8.4 million barrels there. a surprise bill to the upside if crude. we also got this gas bill. most of the games we seen this sex, now we're trading at $30.67. this is not surprising here that a number like this would move the mark. we are taking the crude, defining the product. the product is sitting there. this is the second week in a row. it certainly is proving to be that way. we cold hold on to some of these gain, crude dipping below $30 a barrel was significant.

the market looked look it wanted to rally. we don't necessarily go down in a straight line. this is certainly not a positive bullish sign when it comes to inventory. we have to dig into that report t. last few weeks, it had been on the rise, over 9.2 million barrels a day. if that trend is continuing. the supply/demand story doesn't make sense. sue herrera, over to you. >> here is your news update at this hour. we begin with iran releasing ten u.s. sailors, detained after their boats entered iranian waters. the u.s. apologized. the navy saying there was no indication the sailors were harm. at least 14 people were killed in a bomb attack on a polio center in pakistan. another 23 people were injured. the bomb exploded shortly before vaccination teams were due to be dispatched to local neighborhoods. north korean state media broadcasting nos to of a ceremony in which kim jong-un

had aecom dags to workers that contributed to the hydrogen bomb test. he delivered a congratulatory speech saying it demonstrated north korea's invincible. ge says it plans to cut 6500 jobs in europe over the next two years, including 765 in france. but ge says it is sticking to its pledge to create 1,000 net new jobs in france over the next three years as part of its acquisition of allstone's energy business. that's your news update this hour. charm, down to you. lots of ge news today. >> absolutely. sue herrera. oil price, of coursing have been rising until jackie brought us that data a couple minutes ago. now, of course, in the red. what does that mean for oil stocks? joining us is scott hannah, oil analyst at rbc capital market. good morning to you. >> good morning. >> it's worth delveing into

these refine products. at least at the moment. matter whour take home number? >> you all said there will be a vot of volatility in the coming weeks. i think that's true this coming spring. giving a grasp on these weekly numbers can be difficult. ultimately the way we look at it. demand growth has been farply resill yen want. we expect that to continue through most of 2016. now the key is to see some producer reaction to these low price. ultimately, we've seen some but not enough. but we do think over the course of this year, you will continue to see producers cut back activity in oil production in the u.s. start to decline more. >> global production, supply taken offline, led by whom? led by north american producers or outside? >> will, the big key to what we have seen in the last month or so, the unwillingness of opec to make a decision to cut

production and so certainly as we look over the course of the next 12 months, we expect the non-opec people to see a decline. >> that led by the united states. you know, from peak to you know 2016. we think u.s. production could be down close to 700,000 barrels a day. >> on the demand side of things, scott. a lot of the blame recently for the leg lowering crude goes to china. people say the economy is slowing there. then we learn tonight that china or overnight last night that china is importing a record amount of crude, that last year, crude imports went up more than 8%. so explain the china dynamic here. >> that's right. there has been a lot of concerns on china over the last several weeks, but, in fact, when you look at, you know the data that we've seen so far, it looks pretty enournlg courageing. i think what you have seen from the demand side is concern on what coin can do.

but the reality is, it seems to be hanging in there pretty good. they also do have some stockpiling strategically that they're doing right now. we think that will continue over the course of the next several years. >> scott, i'm not sure if we are able to show a year-to-date chart ka, but i think we're down like 17, 18%, just over five, circumstance seven, eight trading sexles. the move seems more violent than has been in the past. what do you read into that? doesn't a point come in which you say, actually, this is breaking severely lower now? there you go down 17, 18%? exactly. >> yeah, you know, honestly at this point in time, it's really tough. i mean, from the investor's perspective, you are not really getting paid to get aggressive in energy right now. whether it's with the equities or the commodity. you know, there has been a lot of bearish head winds, especially when you look at big picture. you know the iranian barrels are coming back online in the not too distant future. opec production, you know, very

strong. russia production fairly resilient. is investors aren't getting paid to go long right now. so technically, there is really no reason that crude oil, you know, needs to bounce at this point. now, fundamentally, we think things start to look better in the back half of the year. so the markets start seeing more visibility on that, we do think prices will recover in the second half of '16. >> zhao believe you go with integrated. some argue around highly leveraged to a recovery if crude in. >> yeah, at this point right now, you know, i don't see any reason necessarily to get too aggressive in buying some of more of what we call the higher beta stuff. the domestic ent group, some of the mlps, certainly, there is a continued need to be a little bit more into the safety camp. >> that gets you into the refiners him some of the

integrates. when you look at the domestics, the larger higher quality safety names, companies with better balance sheets, companies like contra resource, pioneer natural resources, eog, narco. those names will certainly likely be a better positioning over the course of the next six months. we do think in the second half, it looks better for some of the higher beta. so we'd wait until around mid-year to get more aggressive at some of the more high bid names in energy. >> you know, sorry to go back to the price of oil. it just seems obviously obvious we will waning the shorts are knocked out. it becomes very dramatic, not the least because this is how many countries earn their living. we can't keep having the price of oil go down and down and down. and something not give from one of those oil spliempls sure, it's a wild card from left field. it's just inevitable, isn't it? >> it feels that way. certainly, we've seen, you know

history if you go back into the mid-''80s when you had a depressed oil price for an extended period of time. it took two decades to get out of that. obviously the dynamics are differ with minimal spare capacity globally, but i don't disagree with what you are saying. >> that being said, especially with the iranian barrels coming back em90ly. you know, there is no reason why oil has to bounce 250d. i think your thesis is correct. it's about the duration of when it can stay. you are not gettinged by a to make that bed today. >> that is for sure. scott, thanks so much for your guidance. still ahead on the program, encryption becoming a divisive subject again if silicon valley. on xim, apple's tim cook weighing in yet again t. former ceo of twitter al i rowghani,

we'll talk about that still to come on cnbc. sup jj, working hard? working 24/7 on mobile trader, rated #1 trading app on the app store. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of other competitors do on desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivatives pricing model, honey? td ameritrade.

>> just how much of the chinese markets drive stocks? we discuss, more "squawk on the street" coming up. this bale of hay cannot be controlled. when a wildfire raged through elkhorn ranch, the sudden loss of pasture became a serious problem for a family business. faced with horses that needed feeding and a texas drought that sent hay prices soaring, the owners had to act fast.

thankfully, mary miller banks with chase for business. and with greater financial clarity and a relationship built for the unexpected, she could control her cash flow, and keep the ranch running. chase for business. so you can own it. >> earlier on now, the second worst performing sector, joking with consumer directionary stocks there. this is crude oil on the wti basis turns lower after briefly rising more than 3% to trade more than $31 per barrel. the laggards, consol energy, marathon oil and balero down between 12 and 5%. a very pronounced trade. for some of these names, david. over to you.

>> we want to update people on the story by the boston globe, ge picked boston for the next headquarters city that it will be head contracterred in, cnbc reached out to ge officials. they declined to comment. which was out about less than an hour ago. saying ge made a decision to locate its correspondent headquarters. 800 employees or so from fairfield to the city of boston, simon. >> okay. with the do you dow down 27 poi. let's sends it to chicago and rick santelli for this morning's exchange. >> thanks, simon. i'd like to welcome my wednesday morning guest, chip dixon. chip, thanks for taking the time. >> thanks, rick. >> we live in a consumption economy, healthy consumers is key to any strategy succeeding in investing. i can't tell you how confused i am, many guests, mr. politicos, many speeches given in congress, say the consumer is in the best shape he's been in, in years.

yet the first chart you are packing today was consumer credit to disposable income reaching 26%, a record. that's up 3.5% since the end of 2012. how can we square these two supposed quantitative views? >> well, i think some consumers are doing a lot better. but a lot aren't. you still have, what, 102 million people not work income this economy, 130 million not working or work, part time usually. >> that itself over half the potential work force. real median and median incomes are way down. so there is a lot of people not doing well. we have an economy which can pay some people a loot more money, we're not getting enough of them engaged in the economy, rick, i would add one other thing. i think are 5 million full time jobs short of where we should be this point in the cycle. >> since we're going down this unpopular road anyway, you sa you the jobs report at the end of last week, we're creating a lot of jobs.

but productivity and gdp don't seem to cooperate t. president and state of the union address said, big green light, all is clear. we're sailing along. rec same the notion of exactly how healthy we are. >> well, we are creating more jobs and we shoulgd be. potential labor force is bigger. relative to the labor force, it's kind of inline where we should be. we should be recrateing more jobs. the reasons they aren't is one there is a lot of pressures on business. we're not creating enough new businessles. it's hard because of the regulatory environment. so there is a lot of pressure on people. i think that means less good wage growth and interest rates are up normally low. >> now, when i think about young people being the consumers of the future and the backbone of whatever type of economy we're going to look at, student loans are close. close to reaching 101st of disposal income in the last half minute.

can you equate, now virtually it's been nationalized with regard how the debt is handling. your final comment, what do we have to look forward on that front? >> i think you are going to see slower student loan growth. it's still too much of a household debt. it takes a long time to pay off, which means lex flexibility for consumers going forward. i think that's an issue, it's an economic head wind. >> excellent, chip, thank you for your comments this morning. sarah eisen, back to you. >> rick santelli, thanks very much. when we come back here on "squawkon the street," we are keeping a close eye on oil, down to 30, 34, taking stocks with it. a bag change. plus what happens when you do win the lottery? we'll talk to someone who knows first hand. "squawk on the street" will be right back. .

we live in a pick and choose world. choose, choose, choose. but at bedtime? ...why settle for this? enter sleep number, and the lowest prices of the season. sleepiq technology tells you how well you slept and what adjustments you can make. you like the bed soft. he's more hardcore. so your sleep goes from good to great to wow!

only at a sleep number store... find the lowest prices of the season, going on now. save $600 on the #1 rated i8 bed. know better sleep with sleep number. >> if you win the $1.3 billion jackpot tonight, our own robert frank has some ideas. bring it on. >> forget tax plan and prudent

investing. what if you wanted to go crazy with your powerball winnings? we put together a super rich shopping ris for tonight's winners. you'll want a bigger house. probably a couple. here's the ultimate designer home being sold by the founders of bcbg in l.a. it's 30,000 square feet, 17 bedrooms, movie theater with a snack and popcorn bar, 24 karat gold ceilings, and a pool with 24 karat gold tiles. price there $85 million. you'll probably want awe place in the mountains. you can buy bill coke's entire aspen ranch, over 80 acres, multiple buildings totalling 28 bedrooms, 30 bathrooms, a full sized basketball court, elevators lined in elk hide. the largest hot tub in all of aspen. it could be yours for a mere $100 million. eer you're going to need a plane, right? this silver g4 with a custom silver paint job and seats modelled after ferrari.

check that out. the most expensive ferrari you can buy and one that will appreciate in value. the gto from the 1950s like this one. they're selling for between $45 million and $50 million. now, no self-respecting billionaire or future billionaire could be seeb without a yacht. this 279 footer is for sale. four bars, a full service spa, infinity pool. asking price? $190 million. you can keep your submarine on the yacht. deep flight's new dragon can dive 400 feet, goes for $1.5, and powerball, it's not going to make you a billionaire tonight, but you can feel like one with this. check it out. a watch called the billionaire created by jacob the jeweller. it has 239 emerald cut diamonds set in white gold. price? $18 million. the total tab for our shopping spree, a bargain at around $450

million. that leaves you still over $100 million. it's going to cost you to maintain all these things going forward. guys, back to you. >> we can all dream a little bit. all of america. thank you. >> thank you. >> let's bring in chris who has hit the jackpot once in his life with the mega millions, and he is ready to test powerball luck again. i don't know what the odds are for winning twice. winning once is 292 million, but are you going at it again. >> why wouldn't i? >> talk about what you want. 14 million? it was $14 million. it was split between two people. it was in 2012. it's a lot of fun. $3.5 million each. i paid less taxes because i was a jersey resident. he was a new york resident, so he paid more. >> what have you done with the winnings? >> i invested my money. bought a couple of toys. bought myself a little beach house in miami. >> good for you. >> obviously the numbers are

much larger here. far larger. i would think that the set of advice you might give a winner would be the same. what would it be? >> it's a big pot. would i tell somebody to take it over the 20 year span. >> you did the lump sum? >> it's only $3.5 million. i hired investors to invest my money. i work with my bankers very closely. something like this it's just a lot, a lot of money. it's for a lifetime of somebody's family. i would probably take it over 20 years. >> what would you have gotten if you had taken that $3.5 million over 20 years? >> i don't know the exact number. >> hundreds of thousands a year? >> something -- somewhere around there. probably under $100,000. >> did you give a lot of it a y

away. >> it's still working. every day. >> i watch it go up, and i watch it go down. she used to send me every week with $5 to go play the mega millions. i used to play. i kept it going. >> i go to work. i need that structure in my life. whamz is you are home, i go down to florida. i'm at home. i go to the beach. then by 3:00, okay, it's almost happy hour. happy hour is somewhere.

then the next thing you know the next day it starts at 2:00 or 12:00. i keep myself busy, and i continue to go to work. i enjoy it. i just don't like the ride back and forth froo jersey to manhattan, but i got to do it. >> you got a little bit more of a nest egg now. boo what was your strategy with the winning numbers? were they random? were they birthdays? >> it was a quick pick on a free ticket. >> so you didn't even -- probably about $150. i did a couple of pool with a couple of friends and stuff. >> good luck to you. again. chris mansy. >> you can pay me when you win. >> wow. >> what do we do if we do win? >> lucky lottery itself. >> 50%.

okay. >> it's a contract right there. >> really? >> got his name. >> 50%. i get 50%. you sign it back. >> thank you, guys. john is here with a look at what's coming up now on "squawk alley." good morning, john. >> well, twitter could stand to hit the powerball today. the stock in intraday trading has hit an all-time low. also, walt mossberg is talking about cars, the dashboard, who is going to own it? tech or detroit? more about powerball. just too big not to talk about. all that and more coming up on "squawk alley."

one of the most anticipated lottery drawings in history. it's 11:00 a.m. on wall street, and squawk alley is live. ♪ i never dreamed that i would climb over the moon in ecstasy ♪ ♪ ♪ i've got a golden ticket ♪ i've got a golden chance to make my way ♪