the deal would also leave freeport with $20 billion of debt.freeport executives say getting into oil and natural gas would help diversify the company and keep more of its assets in north america, where there's a huge shale gas boom. they estimate by next year freeport will derive a little more than a quarter of its profits from energy and the rest from mining, versus 100% from mining today. the company says it thinks demand for commodities, especially energy, will continue to grow. that could help offset the increased difficulty mining companies are having trying to find new projects in regions outside the u.s. and with interest rates currently at historic lows, the timing was right to ink the two deals. diane eastabrook, "n.b.r.," chicago. >> tom: daniel rohr is a metals and mining analyst from morningstar and joins us from chicago. dan, how unique of a deal is this in the u.s. to have mining and energy drilling all in the same company? >> it is very unusual, forthe p. decades, ago, however, we had seen a lot of the oil majors, folks like amco

i'm stunned by freeport.on "squawk on the street" and tell us why you think this is a decent deal. >> no stranger to our airwaves. >> he should call in right now. why is this a good deal for shareholders? you have destroyed your own stock. >> we'll see you tonight, jim. when we come back, we're moments away from potential market mover. breaking news on ism services is coming up and factory orders plus the president as we said talking to business roundtable about fiscal cliff. he'll take questions at 10:50 a.m. don't miss that. back in a minute. welcome to chevy's year-end event. so, the 5.3-liter v-8 silverado can tow up to 9,600 pounds? 315 horsepower. what's that in reindeer power? [ laughing ] [ stops laughing ] [ male announcer ] chevy's giving more. this holiday season, trade up to get the 2012 chevy silverado all-star edition for 0% apr financing for 60 months plus $2,000 cash allowance or get a total value of $9,000. >>> welcome back to "squawk on the street." october factory orders stronger than expec

freeport mcmoran and plains exploration.gment that the market confirmed with the tremendous $6.12 or 16% hammering of the acquirer freeport stock. i talked positively about ceos at the top of the show tonight, but i couldn't resist going over this outrage. first, the president and ceo of the faltering mcmoran exploration also happens to be the chairman of freeport, the acquirer. yeah, he's using freeport money and stock to buy his other business, mcmoran, drilling a gigantic well in the gulf of mexico, called the davey jones which has been absolutely disastrous. >> the house of pain. >> so far, for the company, mmr has been crushed by this 29,000-foot deep well, which may turn out to be a total bust. but if you own mmr today, you just got $14 in cash and 1.1 units of royalty trust giving you a massive $7.36 or 87% move in a stock that had been free falling of late courtesy of the missteps in the davey jones project. the other portion, the plains exploration partners gave you $8.35 gain. that's better. they bagged quality gul

those who like copper, reach for freeport. but jjc, my initials and also the etf.ke their substantial gold holdings, go with the gld. yes, you have every reason to be upset if you own it, to me it seems that freeport got the short end of the stick and big shareholders other than the company's chairman can't be blamed for dumping the stock right into the selloff. and by all means, please, ring the register tomorrow, no later, tomorrow on plains and mcmoran exploration. stay with cramer. twins. i didn't see them coming. i have obligations. cute obligations, but obligations. i need to rethink the core of my portfolio. what i really need is sleep. introducing the ishares core, building blocks for the heart of your portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. i heard you guys can ship ground for less than th

freeport-mcmoran, this is a $9 billion deal.se type of things bring optimism to wall street that is one of the reasons why people are feeling good here today. the dow is up over 100 points. freeport-mcmoran is on the move. it is down about 15% here. they are the acquirer and mcmoran exploration and plains exploration are higher. look at mcmoran exploration, that is up 81%. that is a big move. this is about oil and energy. you can see of course, freeport-mcmoran, copper and gold. these are the names that are on the move with this big deal. this is the deal of the day, of the week. a big one. back to you. see you in 15 minutes.. ashley: least corrupt person i know, nicole petallides. let me get that out. tracy: exactly. me on the other hand --. ashley: that's right. tracy: coming up, the eight-day, $8 billion port strike is over. how long will it take american commerce to get back to normal? we'll have a live update from the port of los angeles. that's next. first as we head out to break let's see how the dollar is moving right no

we'll talk about freeport mak and nobody will bat an eye. if you even come out as anything construed as negative, the -- >> they're broken up. >> i'm the first to say that. the fundamentals -- we're not bashing the company. we're just pointing out that technically it appears to be broken at this point. we talked about it last night. and to timmy's defense, he talked about it back in september when the stock was traiting at 685. >> yeah. let's get more on the billing move that we saw today in apple. bring in jean munstra of paper jaffrey. gene, it will be fair to say your price target is $900. >> that's correct. >> and you're sticking by it. >> yes. >> in terms of decline that we've seen, how concerned about the sentiment that it's turned to the point where we are looking at the charts on apple. we're taking a look at that pe graph that we threw up there. we saw the p on apple in a steady decline since 2009 which coincides with the iphone 3gs. at what point do we catch on with apple. apple has the cool factor, apple will have products in the

. >> tim, freeport-mac up 3%. >> they're going to be spending significant money to get outside the copper space. you could have made money here. copper is going higher. i believe in 2013, as the year comes to a close, forget that

of course freeport is one of the world's largest producers of gold.hey're doing it through the exchange traded products. the jjc for copper and gld for gold. copper prices nearly coming in to where gold prices are the last month or so as gold prices and gold holdings are at record levels. back to you. >> thank you very much, sharon. >>> let's get the trading action here. bob pisani is back with me. we were up 131 points. some news flashes out of washington about possible sequestration spending cuts from the omb. basically took the market off ifts best levels. held hostage again. >> we've got to get some action. if we don't see action we'll threaten sequestration. we did move up earlier in the day. there were very vague rumors that some republicans might be willing to break ranks and accept taxes for the wealthy, higher taxes for the wealthy. that of course a major sticking point in the negotiations. that moved the dow up earlier but we don't have anything specific right now. these are all still rumors. apple, just a lot of things going on today. i bel

. >>> freeport-mcmoran is plunging head first into oil. giant is buying plains exploration and mcmoran exploration for a total of $9 billion in cash and stock. freeport will also assume about $11 billion in debt. >>> u.s. oil production reached its highest level in almost 15 years in september. new data from the energy information administration says u.s. crude output averaged 6.5 million barrels a day. that is up 16% year-over-year. thank you shale and fracking. >>> all right, coming up, it is a great hay robbery. the fallout from this summer's drought takes some bizarre twists. i shouldn't laugh. this is very serious. analyst it black market for hay across the country. details coming up next. at the end of the day it is all about hay. ♪ . melissa: hold on to your hay. this summer's drought still burning farmers after causing a big rise in prices. the average bale of hay is now $80. you have $50 since before the drought. up $50. it was 30. now it is 80. can you believe that? because of that hay farmers in the midwest are facing a serious

freeport mcmoran is now down over 15%, but when you look at plains exploration and production, a bigupside and that's up 23. stuart: i'm trying to get this. freeport mcmoran, they're the ones that are doing the buying and plains exploration are the people who are being bought. so the people who are being bought go up because they're paying a high price and the people who are paying the money out are going down. have i got that roughly right? >> that's right. and that's why you see mcmoran exploration as well and i'm trying to work this out and complicate itself. all i want to see if the stock price moves. >> it's a big one. >> by the way, the dow industrials just hit 13,000, a gain of 50 points as we speak. 13,002. to be precise. and coming up this wednesday morning, bob costas admits he made a mistake addressing gun control during half time show of the sunday night football game. he says he should have done it when he had more time to flesh out his point of view. well, we'll be discussing that one. president obama says a deal will not happen without higher tax rates on the rich. kir

freeport oil and gas with a gold and copper division.am in indiana, pam? >> caller: thank you, mr. cramer. what do you think of abt? abbott laboratories? >> that's one of the large positions for actionalertsplus.com, you see the co-research director stephanie link on "fast money" today. and i've got to tell you, maybe my favorite position after starbucks. let's go to kenny in illinois. kenny? >> caller: jimmy. >> yo, yo. >> caller: my question is about this private bancorp. >> don't know it well enough. let's do some work and we will come back, always better to own that than to just say it looks good. let's go to -- i'm going to -- uh, frank in florida. frank? >> caller: hi, jim. an english boo-yah to you. tell me what you think of commerce bank shares. >> i've always liked commerce bank shares and it's in a pro-growth area. i've always surprised it wasn't taken over. it's a very well-run bank. i'm going to -- just so people know. this is kansas city, missouri, and between the chiefs and commerce bank, go with commerce. and that, ladies

. >> freeport mcmoran, 23% falling in the last year.his was obviously the subject of a deal. >> i think you have to let the dust settle a little bit first. but at 30, it's very interesting. it is yielding 4%. this deal does diversify them away from copper. i know pms just wanted to own this just for copper but they have a good history of m&a. i know debt levels go up but they have a good track record of paying that down. i think this deal by the end of 2013 could yield 13 billion ebi ebita. if you have a longer term time horizon, you collect the yield and wait and see how this thing progresses. >> i would absolutely agree. i tweeted out yesterday the reaction to the deal, i thought it was a buy at 32.5. rethin it reading some of the reports. goldman sachs puts a report out today saying it places it in the penalty box which i have a problem with because we use that term here on "fast money," though some don't like it. but i think it is going to be in the penalty box for some time. i agree with stephanie, you have to have a much longer te

ok matt, so copper and gold miner freeport mcmoran now wants to get into the business of oil and gas production. what you think about this stock? > > i tell you what, the stock got absolutely crushed on the news of this deal. the market really didn't like it. it's a complete change of direction for them, a complete change of focus. they're going away from kind of a narrow look to, "hey, we are going to be a big diversified miner. we are going to get mineral assets, we are going to get oil and gas, we are really going to expand our focus here." the market didn't like it so much, so the question is, is this a buying opportunity, or is this a stock you want to stay away from? > why does wall street not like this deal? usually they are big on these companies that have multiple arms going at the same time. > > that is the question. you look at it on paper and you say, "hey, they are buying some really quality assets, they are buying them in good places, they are getting in on natural gas, really diversifying here." but there are some concerns. number one is why are these companies togethe

. >> i know we did want to point out shares of freeport, down again.ther 4% decline for fcx this morning. that also taking down as you might expect, pxp and mmr. mmr is a cash deal. investors just weren't warm to it yesterday and won't warm up today. of course the other deal's all cash. but people still wondering about the strategic rational behind the scene. >> i don't even want to say behind the scenes. >> there are a lot of poor relationships here, jim bob moffett t chairman of both companies, mmr, owns a stake in pxp, board seats. it's related. >> and yet, ackerson, did we get hold of him? he's always been very pro shareholder. this is the most anti-shareholder. unless you're a very large shareholder. >> isn't he cynical? >> these guys are different, moffett and our man in chesapeake. >> thank you. they approach the world a little different. >> is it different from you? you're fitzgerald. >> i don't want to say cavalier, but they like to take risks, that's how they built their fortune in the first police, they all take risks. >> i thought if you bo

caterpillar off, freeport mcmoran off, and newmont mining down, the sentiment for so much undecided in washington. the selling in the mining shares is due to the weakness in gold, down 16.54, down to 9.40 an ounce, dollar rising against the euro, a flight to safety. silver moving lower and flirting with $30, right at $30 an ounce. platinum also lower. a lot of weakness in the metals contracts. getting to the floor show. we got traders in the new york stock exchange, cme group, and imex. beginning with bobby at the nsci. it's held hostage for so long now. what happens if there's a deal that doesn't address anything? is the market stuck in limbo for more weeks, maybe months down the road? >> well, i suspect you're right. if they come out with a cobbled deal that extends it out a little bit, i imagine there's some sort of a rally, maybe not a big rally, a couple hundred points, but back in the same place for a couple weeks. the weeks before the election, everybody talked about the fiscal cliff, and until they really put this deal together fully and for the long term, it's the same thing g

. >> look at shares of freeport mcmoran catching a bid after the deal. complicated deal that david faber walked us through. people are seeing at least some value in decline and shares of -- i'm so used to saying decline with hp. >> freeport-mcmoran. >> very tight as we knew it would be. not requiring shareholder vote as we already had known detailing the $9.5 billion loan they are taking from jpmorgan. the key take away, you're not going to get a chance to say no here. this is happening. they are buying mmr. at least today the stock is up after what had been a terrible performance during the last two trading days. >> explain capitalism to me for a moment. you have a publicly traded company where one person owns a huge chunk who also happens to be the ceo of another company that is buying them. >> chairman. >> chairman. yes. here's what i'm concerned about. this company's stock plummeted because of davy jones. it's pretty clear that i think that there will be few companies that will be making an offer for mmr. >> perhaps not at that premium. 74% premium a

. >>> freeport mcmoran buys two oil companies. for a total of about $20 billion. weiss?ting destroyed. i'm out of about 80% of it last time i looked. the best thing can say about what jim bob moffitt did, he's did i luted some of the international issues. they've had strikes even violence at some of the mines it used to be the go-to place for copper. so maybe the valuations are appropriate now, i think you have to wait for this to settle out. >> >>> pandora is plummeting on a weekout lied. telling us a short time ago that -- stocks getting absolutely hammered today, down 17%. >> the management actually had a misread on this as well. they had been bullish not too many months ago. they're actually looking very bearish. the advertisers are pulling back as well. the potential for competition with apple is another issue they'll have to deal with. for all these reasons, the stock is getting hit hard. so it had a big run, but unfortunately they have to show us the money. >> highs of the day, plus 125 citi is a big winner. given that oil is down. oil is off about 30 cents or so.

freeport mcmoran. >> the other day i pointed out on twitter a that i thought the deal was a good one.erday i am wrong. it got right up to $32.6 3 32.6. i still think i'm wrong. the meeting with analysts was terrible. this is the penalty box. >> sears' apparel seems to be doing better. maybe it is jcpenney they're taking it from. comp numbers from november look good. >> bac's up less than citi and less than jpmorgan. the whole sector i still think is one of the best out there. >> palo alto networks. >> this became public in july. new 52-week low today on negative guidance. but they see trends beginning to pick up so i think you want to take a look at this stock in this $50 range. it's been up in the 70s earlier this year. >> pop for expensive vacations when it comes to holiday travel. are you fed up with florida? sick of san francisco? now promise your family the moon. start-up space travel company golden spike is booking lunar trips for the intrepid traveler. the out of this world vacation will cost you an astronomical sum of money. a pair of tickets going for $1.5 billion. >>> more o

stock of the week, my opinion, i'm going with freeport-mcmoran. there you see the stock for the week. finally, here we are. the major averages, pretty much unchanged. notice that the outperforming the s&p 500. that's because some of the higher priced stocked did better. apple weighed down the s&p and nasdaq. guys, have a good weekend. >> no one wraps it up like you do, bob. have a great weekend as well. see you mondays. >>> house speaker john boehner says fiscal cliff talks remain stuck in neutral. >> the president insist on his position. insist on my way or the highway. >> well, going over that highway and the fiscal cliff would kill thousands of jobs, especially in the defense sector and the head of a defense contractor who will feel that pain joins us next along with former vermont governor howard dean who argues maybe going over the fiscal cliff will be the best thing for the nation. >>> later, we have the former chairman of the council of economic advisers under president bush. he's going to join us as well as laura tyson, the former head of

. >> tim, freeport-mac up 3%. >> they're going to be spending significant money to get outside the copper space. you could have made money here. copper is going higher. i believe in 2013, as the year comes to a close, forget that we're going into 2013, because the market is going higher, copper will go higher. >> drop for watson pharmaceuticals, scott. >> at the end of november, the economy said that it's drug was going to be a big profit driver. it going to be for is somebody but somebody else, because a buy competitor got clearance today from the fda to sell the drug in generic form. >> and a pop here for chickens. >> huh? >> here's a reason to give up poultry in the new year. a pet chicken named cluck cluck is being touted as a hero after waking up its owners during a house fire. the wisconsin couple was able to escape unarmed after hearing the brave bird jacqusquawking. >> how long have they been living in the chicken coop? >> in a happy ending -- geez, guys. firefighters saved cluck cluck the chicken from being roasted. >> do they name every chicken and do they all have this goofy na

plus, freeport fizzles. the fine print on why the company's two big buys are raising big red flags. >>> and nat gas revolution, the government says exporting nat gas could be a game changer for america's economy, but at what cost? we'll take a deeper dive to find some answers. but first, our top story tonight. >>> everyone cares about the fiscal cliff, except, seemingly, the markets. just 25 days until the year end deadline and still no deal out of washington. still stocks quietly climb higher. the dow closing today at a one-month high. what gives? just an assumption that a deal -- >> it almost gets back to that you never short. we're all waiting for some type of closure on the fiscal cliff. so everyone's afraid to take that stab in the dark and say, you know what? things look terrible. no matter how they paint the picture, things look slower in the next couple of quarters than they do right now. am i right? >> yeah. >> so global growth, you have everything coming in, global growth is going to be terrible. g

check out the calls of freeport mcmoran, peabody, or vail. rio tinto. of these stocks is like owning a piece of the great wall. china. you want to be in them when the great wall's crumbling. i have seen downgrades of stocks like yum because it's got a huge chinese business through kfc, and coach which has been expanding agrefsly in china. imagine kfc. similarly a steel company without paying attention to what the chinese are dumping on our markets slyke taking your financial life in your own hands. how are we finding out? companies as diverse as corning, ppg all march to the beat of the asian drummer these days. you're not going see it in the release. it's all in the pestering frt analysts. pretty simple. listen to the call and don't hang up until you've read the questioners. read the transcript. one piece of the earnings puzing which is incredible, this is the earnings season that you have to weather something that i've never talked about before. and we've got to do this before we're done for the night. one that's become obvious to anyone who watches t

>> freeport mcmoran, big decliner today. the situation's kind of odd. biggest drop in four years. the company's buying both pxp and mcmoran exploration, two separate deals. total $9 billion cash and stock. they're trying to get back into the oil and natural gas business. still two-thirds of their revenue come from mining. but they are getting back into oil and gas. investors don't like it. >> how about intel? >> that's down after raymond james' hans mosesman cuts the share to underperform warning the company faces a "potential gross margin nightmare." he sees a risk that intel's gross margin could drop into the 50s range because of increased competition, not from amb but potentially from a.r.m. holdings. down 18% year to date. >> talking trash. waste management. >> double garbage call from goldman. i guess a good call on garbage. waste management and also republic services group. goldman upgrading wm to a buy from neutral saying the rebound in residential fixed investment will drive prices and volumes higher. ie, people are accumulating more stuff and m

already by 1862 talking about leaving the country and setting up what they called an independent freeport, like the city of hamburg in what is now germany. out in the midwest, they were more closely connected to new orleans then to new england. their farm produce went right down mississippi and out to the world through new orleans. they would have been happy to break away from those strange prudish puritanical prigs in massachusetts. what about texas? texas has always wanted to be its own country and it still does. they weren't going to stay in the confederacy. what about california, which in those days before the transcontinental railroad created in 1862, before the railroad, california to the united states. people walking alongside, people sailing for weeks and months around the southern tip of south america. california was eager to go its own way. secession in other words was a tiger that might bite in any direction. andrew johnson of tennessee, great unionist southerner, put it this way. if there is one division of the state, will there not be more than one? wouldn't north america soo

freeport committing a lot of money. plains bought good assets in the gulf.oo attractive. i look at this deal propelled by cheap assets in this country. >> thank you. we didn't spend enough time on that. i know chris' brows went up at that too. >> it's huge. i like pxp because they picked off bp. they tried to raise fire sale. they buy those assets and they say we want those assets. it's a great move for everyone. >> jim, thank you. we'll see you in just a couple minutes. >> absolutely. >> coming up, the stock of the day. is it in your portfolio? find out next. >> announcer: tomorrow on "squawk box," negotiating a deal on the fiscal cliff. we'll talk about possible paths to a compromise with our guest host former treasury seculretary secretary larry summers. don't miss "squawk box" tomorrow starting at 6:00 a.m. eastern. [ penélope ] i found the best cafe in the world. nespresso. where i never have to compromise on anything. ♪ where just one touch creates the perfect coffee. where every cappuccino and latte is only made with fresh milk. and where the staff is

to take a look at because they actually have contracts to take lng exports from a facility called freeport may be the next one that is actually approved by the u.s. government. >> yeah, because that -- that's some multiyear play, i would think. and i mean, i figure we could power the grid with natural gas, and then run so many things off the grid. i just -- it's very exciting. it seems like it's a game changer for the u.s. economy. if we don't mess it up. >> yeah, the shell revolution is a game danger, again, if we don't mess it up. it is already making a difference and one other side benefit is that our carbon emissions are back down to roughly 1992 levels because of the replacement of coal with natural gas. >> what about solar, wind, all the alternative stuff? it gets harder and harder to see that being really profitable near-term, if gas, you know, has a slow move higher, doesn't it? >> that's not my area of expertise but if gas is cheap, i really don't know why other than for political reasons you'd move forward with that type of investment. >> that's why the government does everything