Performance that its seen in about two months. Energy and Technology Companies led the decline, many of 2013s strongest performers were down for the day. If youre taking a look this morning, youll see equities are indicated higher. Dow futures up by 26 points above fair value. S p up by close to two points. Oil looks to be a major market story. Yesterday there was a late day swoon triggered by the death cross. Thats when something you see the 50day average moving below the 200 day moving average. Its viewed as a bearish sign and you did see a big selloff. We saw wti crude falling all the way back down to 95 and change. This morning on, it is still down there, down another 17 cents to 95. 27. Had been close to 100 a barrel before. Also worth watching today, the 10 30 eastern report on natural gas inventories. Then we have the latest oil decline coming about a half hour later. On the economic agenda, we have the major automakers reporting. The number of vehicles that they sold in december tends to be a pretty difficult month. You have mike jackson that told us in the past christmas is a huge season for them. Phil lebeau and veteran auto reporter phil lagrossia will be joining us this morning. Later today, ben bernanke will be speaking at the America Economic association in philadelphia. Many people are looking at this as the chairmans farewell address, so people will be watching closely. Steve liesman will join us from philadelphia with the nbpr chairman. Andrew, good morning. Good morning. Got a little bit of Corporate News on this snowy day. Let me tell you about it. Boeing machinists will be voting today on a contract tied to the 777x. The deal would concede some Pension Health care benefits in order to secure assembly of the companys new airplane in washington. Boeing has been exploring building that elsewhere after the Union Rejected the contract last year. Facebook rejecting a Class Action Lawsuit. The plaintiffs alleged the social network systemically monitors private messages and hairs that information to marketers. Facebook says the allegations are without merit. Going the has faced similar lawsuits for same issues. Fireeye has now acquired forensic specialist mandiant for about 1 billion. Its best known for revealing that military hacking attacks on u. S. Company. Analysts say the deal is bringing together two of the most respected ceos in the industry. David dewalt and devin mandia will join us live at 6 50. Are those guys coming here in the snow or are we going to get them remotely, do you know . You would think we got like eight feet of snow. I cant imagine that they would be coming here. I cant imagine anyone would even have the courage to open their door on this day. If you listen to the radio, these people in new york. But i have a question. How does my computer know that theres snow and its not supposed to work . Is it really booking . I cant get outlook. I cant get these other names. Stayed home this morning. I didnt have any coffee. Oh, boy, youre going to be grouchy. So my first grouchiness is this stupid death cross has predicted 15 out of the last two selloffs. Last year we had that stupid death no, no, the selloff was yesterday but there are people saying this was a one off event. We had death crosses about ten times last year and a couple the year before. Art cashin was saying yetd yesterday, this doesnt mean its going to happen over the number of days. Theres some weird activity. But we reported on the death crosses last year. We were up 30 . So before you get our computers are so screwed up. Now my computer is joes security. Are you guys marrying each other . You dont want to be careful. You didnt even know those websites existed, did you . Doing some pretty no. Early in the morning. I thought you knew to use incognito. Youre doing it straight up on explorer there. Im watching all of our promo things, all of our little commercials. I saw carls. Hes a boxer. I saw yours this morning, by the way. Cramer is waiting on people at a bed breakfast. I have to go and stay over there. More, more coffee. Can you imagine asking for cramer for more coffee . Does he do that every morning . These eggs are a little runny. I said overmedium. I would love to do that. Simon is does the offer does he offer stock advice when hes bringing you the coffee . Thats a good point. No one works harsher. That is true, actually. I felt badly this morning because i didnt super early, too. He was talking about working harder and i said yesterday i wanted to be able to do what i did with a broker, just talk about business, but just waste time. And im thinking, wow, thats different than really working hard. Anyway, lets get back to this nasty winter storm. I lived in colorado. You know, its nasty out there, but how long did it take you to get here . It took a while. I had a great driver. I was ready to take i was going to take penelopes car in here. It has fourwheeldrive. I left a lot earlier this morning. Got the cars cleaned off. Thats the first time thats happened in the entire time ive lived here. I dont want to no, im not. Ive got to take what i can get. Why is this happening . My computer is not working. Anyway, its a big storm. If you havent heard of this storm, i dont know, your power must be out. But then your power is out because of the storm because you know about it but you cant hear me now because your power is out. Anyway, parts of new england have seen as much as 20 inches of snow. The Weather Channels jim cantore has tried to find the worst looking place to be standing right now. Thats what these guys do. Look at that, hes being blown back by the wind. Jim cantore, good morning. Joe, im moving because i dont want to freeze in place. Its kind of the back and forth bobble in through here. Tell cramer, if he wants to wake up, he needs to come out here. This will wake you up, baby, i promise. First of all, im ride by the ocean and its 11 degree. Ive covered tons of storms in new england, but you never really get that kind of cold accompanied with snow at one inch an hour here. Weve had at least 14 inches here in downtown boston. Joe, youre a skier, you love this stuff. Its like fluffy pixie dust owe out here. Zero visibility. With these windchill webs its awful to be out here. Just ask my cameraman. This is the deal with the storm. Its going to pull out later on today. We should improve today. Remember those planes that happen supposed to get in this morning will not be there for the afternoon flights. We expect a lot of cancellations. Once again, we had over 8,000 delays and cancellations yesterday nationwide. 8,000 delays and cancellations. That is incredible. Obviously, the bulk of those coming in and out of ohare. We have another one coming through. We may get rain out of that one as we go into sunday. Monday and tuesday, some of the worst weather that weve seen in terms of cold makes its way down to the midwest. Chicago, the record setting high temperature. In other words, how cold has it gotten during the day . Minus 11. Thats the cold record low maximum. We could be, actually, breaking that. And then theres cold. Football in green bay, could be the second gold eest game ever. That will make folks appreciate being out in the stands, im sure. You know, i understand this sets a lot of people back and theres some danger involved and everything. But i kind of like it and you know the thing that you pointed out, and when i went out this morning, stuff blow its blew in, it all comes in. And its like, shut up so i can get back in the truck. But that means when it stops snowing, if the wind is blowing, its going to seem like its snowing all day long, right . Exactly. Thats the danger of the whole thing. Ive been in situations where the sun is out, blue sky, youre driving along, whiteout positions. Some of these areas have gotting about 44 . How much snow can i squeeze out of water . It has some in this case, its about 30 inches. Im trying, but nothing. Would they delay the super bowl if it was this weekend . Theyve got plans to possibly do this. Yeah. The super bowl deal is, if we honestly, if we get a crippling storm like this in new england, i think they would delay it. And the pattern may change towards the middle later part of the month. Thats the long range outlook right now. We could get a january thaw. Should that time its way towards the super bowl, i think that would be interesting. And, jim, we like to say we like if we get a crippling storm in new jersey, the super bowl will be affected because its really not in new york. I know a lot of new york sent rick people you got me, brother. You got me there. Well see with all the flack. Thank you. Go warm up. My pleasure. Youve got to get kudos for hes going to get kudos for handling this. I hear its down to the blacktop in new york. That is not true. I was just there. Hes going to get kudos. This was not like this morning, the radio was complaining because at 4 30 they were saying new York City Schools will be open this morning because they havent bothered to cancel them yet. They have canceled them, havent they . They canceled them at about 5 00 this morning. What youre going to hear is progressive can its not all obama care. They can manage situations. That is the first thing you hear. Remember bloomberg kind of blindsided him. He will be clearing side streets before he gets to the fdr. Progressive is better at managing through snow than the business oriented i cant wait to get to our ceo piece. Lets get to this. I cant wait until you get your coffee. Im not complaining. In market news, activist investor and Hedge Fund Manager dan loeb beat most of his rivals last year. His Flagship Fund returning 25. 2 . Wow. He kept pace with the index for only two and 20. Loeb said the bulk on his debt are on large u. S. Stocks opinion expected to give more details when he releases his Fourth Quarter letter. Give me just a second. He releases that letter to investors in the next few weeks. Theres no sweetener in there. Thank you. Theres no sweetener. I think i need a yes, please. Im calling my agent. Im getting the swede ner because i want to get a coffee, too. Go for it. Theres no sweetener, mac . Seriously . No, wait a minute. What is that, sweet and no, no, i need equal. No, im kidding. Thats swimming with sharks. Great. Whatever the guy brings them, he needs the other. Joe, i can help you. Thank you. Do you want some equal . No, im fine. Im kidding. Here is some equal. Here you go. Im going to mix and match. Lovely. Sorry. A watchdog for the Labor Department says the agency needs to improve how it releases the jobs data. Labor should either tighten the procedures that it used to release market Sensitive Data to the media or scrap them altogether and then distranscript the data directly to the public the. A panel was reviewing the process in an effort to prevent the possibility that some investors could have an unfair advantage if they got that data first, which is always always something that you dont want to happen. Do you have a preference . Theaters have gotten faster. I just drink hot water right now with lemon. Very good. No, so you dont care, splenda, equal . I dont use any sweetener. How about you . No sweetener. Okay. Sissy. Lets check on the markets this morning. If you take a look at the futures, you will see they are indicated higher. This comes after a pretty poor performance. Yesterday, the dow was down 135 points. The s p was off by 16 points. This is the first time in six years that stocks fell on the first trading day of the year. This morning been you see the futures are higher. Dow up by 26 points above fair value. S p up by 11. 8. Oil prices, as joe was talking about, oil fell 0. 32 . This morning, its down another 16 cents. That death cross is what people were blaming it on. I dont think this is the story were going to be talking about next week. But you can see right now, crude oil are at 95. 29. Then again, were due. 08 was a bad year, wasnt it . Yeah. But there was a reason for that. That was the recession and people stopped if the market goes down first in anticipating something that is coming. Do you think the economy is taking a turn for the worst . I hope not. I hope not. That would certainly be out of the consensus. But weve made that point before. It may not be that people arent worried the economy is going to recover. It may be that the markets run up so much that it doesnt make sense. Thats the wedge, the fed wedge. Is that whats going on here . What are you looking for . Im looking for a stirrer. Ats service here. High maintenance. You know who we need now . Cramer. Ive seen he is at the beck and call of people youre going to go there, arent you . Im going to go there. Nightmare customer, look out, jim. Just faking, jim . Joe, turn around. Look at the service youre getting. Thank you. Thanks, mac. Was this over there . No. Where did you get it . From the garbage can. Thank you. All right. The tenyear note yesterday started the year at a 2 1 2 year high. It remained around 3 for most of the session. This morning, its sitting just below that at 2. 992 . The dollar was better across the board. Its up against against the euro at 1. 3647. Its down against the yen at 104. 44. Its down against the pound, too. Gold prices rallied nearly 2 yesterday, the biggest gain in three weeks. That came after it posted its worst year in 32 years for gold. This morning, it is up by about 36. 1,231. 90. Growth in chinas Services Sector fell to a fourmonth low in december. Business expectations dropped. Now we get to london and Ross Westgate and, ross, were complaining about the cold here. How are you feeling this morning . Were okay. Were a little wet in the uk. We have storms coming in with high tides and a risk of flooding. But we used a bit of rain, as you know here in london, becky. Meanwhile, lightly warmer. Were weighted to the upside, a little bit more than seven to three, advancers outpacing decliners on the Dow Jones Stoxx 600. Translating into slower gains this morning. The ftse 1 00 currently not doing too badly. Just off 0. 1 . The standout stock is next. Sales up nearly 12 . November the 1st to december the 24th. Theyve raised the annual profit forecast, as well. Next step stock up 8. 5 this morning. Xetra dax and the cac 40 up 0. 25 each. And the ibex up 0. 4 . While that is done, it has pushed the spread between spanish debt and german bunch to under 200 basis points. Its the first time weve seen that since mid 2011. There will be some debate about what happens as u. S. Yields continue to rise about what happens to this space. But below 4 , thats helped out italy, as well. We have quite a lot of data out of the uk, as well. Gilt yields still above 3 . Uk mortgage approval up at a fiveyear high. House prices, according to the nationwide building society, up 8. 4 year on year. But there was a big drop in lending to large firms, down 4. 7 billion, which the bank of england has yesterday to explain. So well see whether that maintains a train, as well, into next year. There is a lot of wind and rain and risk of flooding, as well. Thats what weve got. Back to you guys. Okay, ross. Thank you. Were all right. Once youre here, its fine, right . Yeah. Not a lot of snow. Yeah, now. You get more rain, right, in the on yeah. In the uk, yeah. Okay. Kind of fun. You have to watch simons thing, ross. Lets sing the american dream. Its also a better place. Its nice. Its inspirational. Maybe some day, ross, if all your dreams come true, you might be able to come over here for more than just a visit. Coming up, you have to tune into this to see if we Say Something that ends up having one of us fired. Why a good looking ceo could mean bigger returns for your portfolio. Im going to let you handle this. Im ready. And the person they mention here is Marissa Mayer. Im very excited to talk about this. This is absurd. Its totally inappropriate. Theres nothing inappropriate about it. Okay. Fine. You handle it. First, on squawk sports news, this was im really happy about this. I dont know why. I guess maybe theres too much alabama, too much s. E. C. , but oklahoma, 11th ranked oklahoma defeated number three, alabama. That makes us happy that auburn won and is going to face Florida State because maybe alabama isnt as good as we thought. Trevor knight completed 32 of 44 passes for 348 yards, 4 touchdowns, a. J. Mckaren threw for 387 yards and two tds. But he had two interceptions, and lost a fumble that was returned for a touchdown in the closing seconds. So here we go. Oklahoma. [ male announcer ] this is the story of the little room over the pizza place at 315 chestnut street. The modest first floor bedroom in tallinn, estonia and the dusty basement at 1406 35th street. It is the story of the old dining room table at 25th and hoffman avenue. The southbound bus barreling down i95. And the second floor above the strip mall at roble and el camino. This magic moment it is the story of where every great idea begins. So different and so new where those with endless vision and an equal amount of audaciousness believed they had the power to do more. Time and time again. And then, it happened at dell, were honored to be part of some of the worlds great stories. Stories that began much the same way ours did. In a little dorm room 2713. This magic moment welcome back, everybody. Its time for the executive edge. If you want bigger returns, maybe you should look for a good looking ceo. Better returns on their first days on the job and they boost Stock Performance when they appear to television according to a report. Two economists at the university of wisconsin rated 2 attractiveness of 677 ceos from s p 500 Companies Based on facial geometry. I dont know, guys, what do you think . So, joe doesnt you dont want to go there. Ill go only go one place. I know this to be true in the case of Brian Roberts and steve burke. Thats all im really willing to very handsome men. Yeah. All the way down through the entire organization, hoffman and pat, all of them. Extremely attractive. And very symmetrical. Perfect. And one other guy that we always mention, lundgren. I was going to say lundgren. But how do you explain jack welch . Just kidding, jack. We love you. We love you. The greatest ceo of all times, not exactly george clooney, but he has his own appeal. You know what it is . The patient sympathy etry, like Angelina Jolie has a really symmetrical face. Shes not a ceo. No, but its i dont think brad pitt would be a very good ceo. No. But the point is, historically weve elected people who are attractive. We elect people who are tall. We elect people who are tall, who have hair. And part of it is that they are as a result of whatever this attraction level is are better salesmen, therefore better able to persuade the organization to do what theyre supposed to do. You have to write your column. Persuading investors. But is that just saying were all stupid for falling for it . I think its a little bit of that, but i thought the larger issue was if they were attractive, therefore, they were able to persuade their own teams to do better, therefore the company would do better and the stock would do better. I think its a scam. Its really kind of stupid and kind of inappropriate. I dont think im not even comfortable talking about, like, lady coes and whether theyre good looking or not. Do you want to talk about Marissa Mayer for a second . No, i dont. You can. She was raised in the study. I wasnt going to show the picture of her this way. Cheryl sandberg is attractive. Cheryl sandberg. Are you going to mention great lady ceos that arent attractive in your eyes . All im suggesting is there they like minefields for us. Do you think this is i think its total bs. Yes. Do you think to debunk this study . I think its ridiculous, yeah. I want you to write a column on it, though, and see if you can get fired from some place. You have an editor, though, dont you . I do, but that hasnt stopped me before. I thought bossty was good looking. Hes a handsome man. Im willing to go to the guys. You dont want to talk about i dont want to Say Something hurtful. I can needle some of the guys i know. And i needled becky, where do you stand on this . I think its stupid. We have proved that good looking anchor people are really important, cheers. And weve got a lock on that or what . Weve got becky. Thats what we have. Lets move on. The next story is ride service uber. Its fighting back against social media outrage over pricing policies. Ahead of new years eve, the companys ceo addressed perspective customers and said if you absolutely need a ride between 11 00 and 3 00 a. M. , uber will be r liable, but it will be a pricey ride and you have to accept that. Fares result sometimes eight times higher than possible. Uber has entered more than 60 markets from its hometown to berlin to tokyo. But, guys, the question is should you have Market Pricing when more people want a cab, should you be willing to pay more . Id say sure. Yeah. Otherwise, if they hold the prices down, there wont be anyone to pick you up. Theres market prices on airlines, market prices on hotels. Could you have got uber today . You could have gotten uber today. The reason nobody complained on new years eve, so many cars were out in force and maybe this is a function of the pricing, they were expecting surge pricing so they were going to get higher fares. That it created more supply and the demand didnt keep up with it so the max on some of the uber surges, if you will, were three to four times. This is what one of the drivers was telling me. To me, its all fair game because its not like you dont find out about this in advance. They tell you well in advance the surge pricing is in effect. If you dont want it, wait for a cab. But an airline or a hotel at some point says, you know what . Were out of rooms, were out of seats, were done. I think thats okay. I think the idea of but on the way up, youd probably pay a lot more for it. On the way up, you pay a lot more for those last hotel rooms. Trust me, i know because im booking a vacation to go away over a Holiday Weekend and i am paying a lot more for everything were doing. Hold on, not 10 and 15 times the minimum. But you either believe theyre compressing or you dont. There was a tweet by Jerry Seinfelds wife. I dont know if you saw this. She had gone in that storm a couple weeks ago, she had gone to pick up her daughter or one of her children from a bar mitzvah or something, and she did it on uber and it costs 450. She wrote oh, my god, never again. Did she know before she got in the car . They dont tell you you the price. They tell you two times, three times you dont have someone that gouges you and charge the market price. You have to assume that its the market price. But its hard to not gouge. At some point, it cant be that you can charge people 20 times what it is. It doesnt make sense. I say you can go three, four, five times, but Jerry Seinfelds wife says shes never doing it again. If it becomes outrageous, there will be enough people who will say i will never do this again and it will shut them down. This is true. At some point, i think there should be a plaques on how theyre and if theres no cars available, theres no cars available. That to me is maybe a better alternative than and by the way, better for drivers. I talk to drivers who say when theyre at these high surge prices, oftentimes theyre riding around empty because they need to be available to all the people willing to pay the prices. If theyre charging above what people will pay for it, if thats the case, uber will suffer. Theyll be the ones who bear the consequences. When theres surge pricing, do you think that uber, the company, should share more of the profits with the drivers . How much do they share . Its 20 across the board. If youre the drivers, you pay 20 to uber, no matter what the price is. Those to me sound like they are glitches along the way. If it huts uber, they will change their structure. I just think uber needs to be clear that the reason theyre doing is to have cars on the road. As oppose dollars to were going to have more cars on the road because of higher prices. Its a pretty interesting study in economics in supply and demand. You have to make sure that its you know, whenever we talk about pure supply and demand, if theres stuff thats influencing it one way or another, then it really isnt. And, you know look, i used uber yesterday. I love uber, but there are times when the price is a little much. And my guess is if you feel that way, then its probably a major portions of their clientele feel that way. I wouldnt assume that, that everybody is as cheap as andrew. Well, look, thats when i jump on the subway. I think thats the biggest stretch weve made this morning. Thank you. Frugal. Just like mitt romney. Just like mitt romney. Yeah. Frugality is a good thing, not wasting. Thats a about quality. Not going to say anything about nick, no comments on santa, just keep it on the straight and narrow. Yes. Marissa mayer, lets go on to our break, becky, quick. When we come back, whether you are thrilled with the returns or wondering what went wrong, we are ready to help make sure that 2014 is a profitable year for you. Weve got market ideas when we come back. Plus, the latest on the winter storm slamming much of the country. Jackie joins from boston. Good morning, everyone. It is a Winter Wonderland here, but i can tell you that it is not a pleasant Winter Wonderland to be in because it is so cold here. It is 4 degrees is what our car says it is, but it feels a lot colder because of the win. The plaza where im at right now, this is always a wind tunnel and today is no exception, especially with this arctic chill were dealing with. We got, you know, a few inches of snow here, up to a foot in the boston area. Its hard to tell because its been drifting so much and theres so much plowing going on. But i can show you what the snow is like. And its this powdery snow. You cant even make a snowball with it, really, because its so dry out here. Thats the conditions were dealing with. So as People Get Ready to go out to hurt, the governor has said, people, dont go to work if you dont have to. Dont get on the roads if you dont have to. Plows are doing a good job to clean up as much as they can. But the fact is the snow is still coming down. Its expected to do that until about noon. It will be a lot of work ahead. The roads are okay now just because theres not many people out there. But once you throw a few cars out there and get a few accidents, thats going to become a real nightmare. So basically, theres really nothing going on right now other than people trying to stay warm. Jackie bruno, live in boston for cnbc. There will be more cnbc coming up. Velocity 1,200 feet per second. [ man 2 ] your looking great to us, eagle. 2,000 feet. Still looking very good. 1,400 feet. [ male announcer ] funny thing happens when you shoot for the moon. Ahh, thats affirmative. [ male announcer ] you get there. Youre a go for landing, over. [ male announcer ] the all new cadillac cts, the 2014 motor trend car of the year. Welcome back. How is everything . Theres nothing like being your own boss and my customers are really liking your flat rate shipping. Fedex one rate. Really makes my life easier. Maybe a promotion is in order. Good news. I got a new title. And a raise . Management couldnt make that happen. [ male announcer ] introducing fedex one rate. Simple, flat rate shipping with the reliability of fedex. Welcome back, everybody. Stocksic kicking off the new year with losses. Joining us now is david burson, former chief economist at fannie mae and david kronk. Wells Fargo Private bank. Darrel, what do you think is going to happen this year . Becky, i think when you look at where we are in the cycle, a lot of people think were trending to the mid point in the cycle. When you look at the data suggesting volatility was low last year, confidence was increasing. Were at about a sixyear high on consumer confidence. What typically happens is the macro market risks dissipate and the fundamentals take over. And thats really great for us as investment people because we think that that is going to lead to a pretty strong year still. You know, henry laid out the reasons that we could see a crash at some point. He admits that nobody can predict these things for sure. But he looks at the valuation by three measures and says things are starting to look expensive. One of them is that longterm p e ratio, if you get rid of some of the cyclicatlities. We have come a long way quickly. You go back through 2012 up through today. Markets are up about 40 on today on a large company. I dont think were pushing overvaluations at this point. I think were fairly valued, maybe slightly trending towards a little expensive. But what people make the mistake of is they look at the market multiple at 15 times, 16 times. The market rarely trades at the fair market multiple. Its generally trending from cheap to expensive or expensive to cheap and it looks like were still trending from cheap to expensive at this point. Were not there yet. I think theres room for 2014. The other point id make there is when you look at the sectors, becky, you cant look at all of them being equal. If you look at sectors like energy, telecom, industrials, almost all of their growth in 2013 and prior was through Earnings Growth and not through multiple expansion. So you have to get into the fundamentals. Thats a good point, too. David, if you take a look at it, part of what darrel is saying is the economic fundamentals take up at this point and take over. Do you think thats going to happen in 2014 . I think thats exactly right. If you look at where we are in the business cycle, its been a slow expansion so far. That means, i think, that theres a lot more to go. As darrel said, were maybe halfway through. Weve had four years of expansion, can we get another four . I think we certainly could. Part of the concern people have started raising, though, too, david, is what happens to things like the Housing Market . Its been recovering, but as you start to see treasuries move up, thats going to make mortgages more expensive. In the past that has cut into the recovery. Do you think that happens this time around . I think it will cut into the recovery. The job market is picking up and if you look at all the things that affect housing demand, jobs are the most important thing. People are always willing to buy houses, even if its expensive to finance them as long as they feel confident about the job and income earnings prospects. Well, is that going to happen . Jobs have been a huge picture. We may be looking at the unemployment, the official Unemployment Rate falling to 7 , but there is a lot of unrest out there. There is unrest. Most economists look at the payroll numbers. Those had been picking up. I think its expected that theyll pick up more next year. We certainly think it will. We think Payroll Employment is going to average over 200,000 a month. Darrel, you talked about the sectors that you like. If theres a couple of stocks that you think are the best ones to get into. What would you tell people . I usually leave the stocks to our good analysts that do the work. What we really like right now are the Technology Sector and the industrial sector. Both tend to do well in a rising Interest Rate environment. Both have significant exposure to the foreign markets. So as europe, japan recover as well as the emerging markets stabilized, that bodes well for them. And in particular, Like Technology has more carve cash on the Balance Sheet than debt. From a valuation standpoint, they trade at a roughly market multiple. Historically, tech has traded at about a 20 premium. When you look at industrials, you know the confluence. You get the cheap energy, you get the collapse of the emerging market wages from the developed market wages. The other point id make, also, is just when were looking at q4 gdp growth, which we wont see the First Release until january 30th, it looks like it has an upward bias to it at this point. The ism number yesterday at 57 along with the Consumer Spending numbers is consistent with a strong gdp growth number for q4. I think there could be some up side surprise there, as well, becky. Thank you for joining us today. Thank you for coming in. Thank you. Were going to transition from football soon to march madness. Yes. So arizona is number one. Played Washington State yesterday. I saw it go by on our on ticker. 6025. What . The lowest in history. Thats a record low. How did that happen . They didnt have one of their starters and arizonas defense is amazing. But held the cougars to 25 points. Anyway, coming up, a major dealing in the world of Cyber Security. Looked like a football score almost. And then later, the state of the american economy, courtesy of the man who makes the official calls on recessiones and expansions. Nber president James Poterba will be our newsmaker at 8 00 eastern. I have an associate that met with, uh, an unfortunate accident. While hes been incapacitated, somebodys been paying him cash. Now, is this your doing . Aflac . Now, if i met with some such accident, would aflac pay me . Nice. This is your stop. [ male announcer ] find out what aflac can do for you and your family. Aflac . [ male announcer ]. At aflac. Com. Just by talking to a helmet. It grabbed the patients record before we even picked him up. It found out the doctor we needed was at st. Annes. Wiggle your toes. [ driver ] and it got his okay on treatment from miles away. It even pulled strings with the stoplights. My ambulance talks with smoke alarms and pilots and stadiums. But, of course, its a good listener too. [ female announcer ] today cisco is connecting the internet of everything. So everything works like never before. Coming up, from a breach at target to snapshot information being stolen, hardly a day goes by without troubling news in the story. Were going to talk to two of the nations most respected Cyber Security company. Later, juicing is becoming a trend. The ceo of jamba juice will join us at 7 00 a. M. Eastern. Time. Al off roble avenue. This magic moment it is the story of where every great idea begins. And of those who believed they had the power to do more. Dell is honored to be part of some of the worlds great stories. That began much the same way ours did. In a little dorm room 2713. This magic moment [ male announcer ] even more impressive than the research this man has at his disposal is how he puts it to work for his clients. Morning. Morning. Thanks for meeting so early. Come on in. [ male announcer ] its how edward jones makes sense of investing. The physical damage was pretty bad. The emotional toll was even worse. Our daughter had nightmares. What that robber really took from us was our peace of mind. With adt, we got it back. [ male announcer ] every 14. 4 seconds, a burglary takes place in the United States. So rely on the fast alarm response of adt. A single adt system can help protect you from burglary, fire, and high levels of carbon monoxide. When an alarm is received, adt calls the local authorities for help. And you can get this monitored protection, plus great local service, starting at just over 1 a day. And only adt offers a theft protection guarantee. Take it from me. The time to think about a Security System isnt after something bad happens its before. [ male announcer ] call now and get adt installed for just 49. You could save a lot more than money. Hurry, and take advantage of these savings. Adt. Always there. That its given me time toabout reflect on some of lifeseen biggest questions. Like, if you could save hundreds on Car Insurance by making one simple call, why wouldnt you make that call . See, the only thing i can think of is that you cant get any. Bars. Ah, thats better. Its a beautiful view. I wonder if i can see mt. Rushmore from here. Geico. Fifteen minutes could save you fifteen percent or more on Car Insurance. Welcome back to squawk box on this snowy friday morning. Global Network Security firm fire eye acquiring mandian. You may remember, the company that exposed one of chinas Cyber Espionage units last year. Joining us to talk about is dave dewalt. And the former ceo of mandian, now c. O. O. Of the combined company. Congratulations, guys. Thank you so much. I want to get into the security issues, but give us an explanation of what this transaction does. Well, maybe ill start, kevin, and you can add on, if you like. You mentioned at the outset there this is sort of a perfect combination. And we see as very complementary. Network Security Products coming from fireeye. And what does it mean for those uninitiated here including myself . Sure, end points are things like your microsoft pcs as well as your apple mcintosh computers. A nice combination between the two. And how much of the combination is about the software . And how much is it about the Consulting Services to businesses . Well, i think youve got to have both. I think when you look at the complex threats people are dealing with nowadays, you used to have what i called attractive nuisances in the 90s. But the attacks people are suffering today are almost like being sucker punched in cyber space. You need the expertise to really respond to the complex attacks that were dealing with. What are you worried about most . I dont want you to give me maybe a view of the world, but what is the greatest threat right now . Sort of play out the permutations for us. Sure. Well, i can tell you this, wherever theres conflict, therell be a Cyber Component to it. If theres an ideological difference between the east and west or between terrorist groups and economic western power, youre going to see a Cyber Component to that. And were going to have to deal with that Cyber Component. And whatever it is, itll be destructive. Right now were dealing the intellectual property, credit card numbers. But the things we worry about in the Security Industry are the attacks more nefarious meant to disrupt business and disrupt, perhaps, electric grids. And thats what i worry about. Electric grids. I think to myself at this point, if Googles Gmail went down for not ten minutes, but ten days, what that would do to certain businesses and economies to actually take a bank literally offline. Are those things that you suspect are realistic in this environment . Well, i think its possible, but i think its also something that first, companies do a very good job of protecting the electric grid. Its not going to be a simple endeavor to do. And when you do destructive acts like that cyber space that have physical impact, the response isnt necessarily going to be in cyberspace in those types of twakts, the deterrent might be something else. Is the bigger threat external or internal. People look at the target situation and there has been speculation that something on the order of that magnitude had to be an inside job. Now, we dont know if its an inside job, but, you know, when you look at Something Like that, how do you consider it . Well, from my experience, an outside job looks like an inside job really fast. The bad guys break in and then they get the credentials User Accounts and passwords used by the valid users. Your cant really distinguish between an outsider and insider. Once they break into your networks. I think that, quite frankly, theyre both a threat and you have to be ready for either an inside attack or outside attack. Hey, dave, before we go really quick, can you tell us, is there a threat or something thats been stopped that we dont know about . But had we known about it, boy would we really have at different view of whats going on out there . Well, it actually happens every day, were seeing quite a few attacks on our infrastructure. And kevin was alluding to some of these inside attacks. But were seeing a number of them. Just yesterday, we saw the Syrian Electronic Army bringing down skype, a lot of infrastructure like that, twitter, the associated press, and some are very successful. Sometimes theyre not. But theres a lot of very egregious activities happening in the world right now, and yeah. Guys, thank you very much. Congratulations on the deal. Hope to talk to you soon. Thank you. Thank you. Stay warm. We have more of this mornings top stories. Plus, the latest on the winter storm slamming millions in the northeast today. The forecast from the Weather Channel still ahead. And preparing your portfolio for the new year. We welcome barry knapp and Rebecca Patterson. If yand youre talking toevere rheuyour rheumatologistike me, about trying or adding a biologic. This is humira, adalimumab. This is humira working to help relieve my pain. This is humira helping me through the twists and turns. This is humira helping to protect my joints from further damage. Doctors have been prescribing humira for over ten years. Humira works by targeting and helping to block a specific source of inflammation that contributes to ra symptoms. For many adults, humira is proven to help relieve pain and stop further joint damage. Humira can lower your ability to fight infections, including tuberculosis. Serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer, have happened. Blood, liver and nervous system problems, serious allergic reactions, and new or worsening Heart Failure have occurred. Before starting humira , your doctor should test you for tb. Ask your doctor if you live in or have been to a region where certain fungal infections are common. Tell your doctor if you have had tb, hepatitis b, are prone to infections, or have symptoms such as fever, fatigue, cough, or sores. You should not start humira if you have any kind of infection. Ask your doctor if humira can work for you. This is humira at work. Welcome back to squawk box. A cold front for the Financial Capital of the world. A cold front for stocks. Our guest host will give us their Weather Forecast for the markets. The auto sector in overdrive. Youre not on fire. Not on fire. December sales figures about to hit the street. Can the automakers and consumers keep up the pace . Thinking about getting healthy for 2014 . Need a little wind here. No, you need to drop a couple hundred pounds, blimp. Jamba juice is way ahead of you and the ceo is taking the squawk ceo call. Conquer the morning, conquer the day. I clap my hands and say this is going to be a great day. Squawk box begins right now. Good morning and welcome back to squawk box on cnbc. Im Andrew Ross Sorkin along with joe kernan and becky quick. Overnight, snowstorm shutting down roads, canceling flights, closing schools. And some areas are expecting up to 2 feet of powder. But the problem isnt just snow, its wind and it is cold temperatures across the northeast will dip into the teens with windchills down to 30 below zero. Were going to have a live report just a little bit from the Weather Channels jim cantore in boston in a minute. But in the meantime, take a quick look at the futures see how things are setting up on this snowy friday morning. Dow looks like it would open up higher after a tough day yesterday. Nasdaq up about a point and a half and the s p 500 up about a point and a half, as well. Thursday marked the first time stocks had a losing first trading session of the year since 2008. That snowy friday mornings working for you, isnt it . Like carl. Or brian williams. Is it a snowy friday morning . Snowy friday morning. Very anchor. Do you think have you seen anchorman . I saw the first one. I thought it blew. Youre wearing jeans . Can we do this on friday . I say we do it every friday. Could we get away with that . And youre wearing sneakers. Earlier you said i look good in them jeans. Very handsome for a friday morning. Ive got the sneakers. And ive got the sweater. And weve got this friday morning. Wheres the tenyear on this snowy friday morning . Let me tell you where that is. Throw that across the screen for a quick sec. A little over three, up slightly. Also headlines to bring you this morning on this snowy friday morning. Were going to see how the nations automakers did in december, this morning, with the release of last months u. S. Sales. Estimates that sales were up 5. 2 from december 2012. Boeing machine also taking a second vote after rejecting it by a wide margin back in november. Boeing had said if the contract is approved, it would locate production for its 777x in Washington State and will seek other locations if its not. And the watchdog unit says the procedure used to release Economic Data should either be changed or scrapped altogether. At issue is the socalled lockup process, weekly jobless claims or the jobs report. Theres been concern among some traders gaining an advantage through the use of computerized techniques and this is when Steve Liesman or Hampton Pearson or all of these guys are locked in this room. And they try not to twitch. I dont believe the informations getting out from the room, but through Super Computers faster when they leave the room. Isnt thats whats happening . Different parts of the government have different systems. So some rooms are an actual lockup and you cant leave the room and all the computers are controlled centrally. But other parts of the government do it different ways. And i think in the case of the weekly jobless claims data, its not as locked down as some of the other data. Its like the monthly jobless report. Rebecca patterson, by the way, everybody. Formal introduction, but thank you for being here and giving us a little bit of detail. And barry knapp is our guest host. You guys made it in today, we appreciate it. Yeah. Put on the snow shoes and slushed on in. It was fine. The drive was nothing compared to going across veil pass. Yeah, you came in right next to short hill. We got 30 inches of snow right before christmas in colorado. This is nothing. Im fascinated with this. No one can see these, really . No one can see these . So i could get away with this, you think, on fridays . And the sneakers. The sneakers i wore in big boots. And i had these sneakers sent to me. They got warren buffett, his picture on it and the berke sneakers. Yeah. I never wore them but war them now. You could have a chapter in your book of casual friday, right . Yeah. He did not want casual friday but the board voted 181 with him being the one vote against back in 99. And after 9 11, the vote and we went back to no more casual fridays. How would you feel . Would you do no ties and sneakers . I would definitely do no tie. No tie . No tie every day. I worked at lehman too long. Yeah, this has been 30 years. And we discovered if you just have the loose tie, it doesnt look right. I used to think like, oh, im working really hard. Looks like youve been drinking really hard. Someone told me that. You dont look like youre working hard. But im ready to do this if you think we can do you think . I think its okay. We may have to change the sweater of the month thing to the sweater of friday. Im not going to wear the sweater thing. Its cold in here a little bit. Okay. All right. Nippy. Its a bit nipply in here. From christmas vacation. I knew. They were playing it on tnt. I watch it every holiday. Hes at the counter of the cosmetics. Talking about things being nippy or nipply, were getting back to the nasty winter storm hounding the northeast today. The Weather Channels jim cantore joins us from boston where it is quite nippy. Good morning to you. Reporter yeah. Thats an understatement. Who said its cold in the studio . This is cold. Its 3 degrees out here. And the windchill is about 25 below. Thats cold. Guys, im really psyched, by the way, for San Francisco green bay for two reasons, a, im a packers fan. Number two, its going to be about 5 below for that game. Now youre teetering on probably the top three or four coldest games ever played outdoors. Remember river front a few years back and the ice bowl back in the 60s. Were talking about bigtime cold coming in toward green bay. But with storms like this, big snow in boston. And we have not seen any salt spread at all. What a great view up here, by the way. The roads, theyve done a great job keeping up with the snow because its a light and fluffy snow. What were worried about, especially with the snow coming down and the winds kicking up, 20 to 30 miles per hour. We very well may see some of the visibilities drop to about zero later on this afternoon. Thats what we want people to get aware of. You get out on the roads and get stuck in this stuff. Unless youre four layered up, youre not going to be a happy camper. I can tell you that right now being stuck in a snow pile. Obviously the city shut down. Weve got a very minuscule rush hour here. Theres one of the reduced visibilities i was talking about. Hoping to get logan back online at about 12 00 today. They ceased operation at about 8 30 last night. Wise move. And coming in yesterday from ann arbor in michigan, we were on final approach and the pilot pulled up because he heard a report before we landed in boston that the minimums for braking were very poor. We sat there for a second, scraped the runway, got off the ground and came back. I just made it in here ahead of the storm. Needless to say, we are talking about over 2,000 cancellations and delays so far today. And that number only expected to go up. And i have a feeling, guys, if i dont get out of the way, im going to be part of that snow pile pretty soon. Back to you. Thats always fun. Especially at logan. You think youre coming in and then he pulled up. That makes for a nice flight, jim. Yes. In a snowstorm, all right. You know, the only problem with that was they were serving mimosas and i knew id have tcoe over here and do live shots. You deal with it. You deal with it, right . I guess. You could have had one, one or two. One or two. Thank you for putting up with this because you are listening to us complain about not having our coffee, complain about being cold. Youre putting in the hard work, we appreciate it. I wouldnt have it any other way, guys. He gets paid huge dough for this. I looked at his twitter profile. He says its the trip and thats what makes it worth it. Hes the name you expect to hear when youre going to go to. You expect to hear or youre hoping you hear him. Is. Hopefully well check in with you a little later, too. Lets talk about a few other headlines. Manhattan apartment sales have hit a Fourth Quarter records. The number of purchases rose by 27 compared with the same period this year the year before. Wealthy International Buyers are now competing with new yorkers and thats been really making prices soar. Also, limited supply, thats led to buyers making immediate allcash offers. The median price jumped 10 from a year ago to 4. 9 million. After de blasio was elected . For a couple of days. 4. 9 million, i cant believe thats the median. Yeah. Thats up there. Wow. Also, alicia keys and blackberry are parting ways. Its been just one year since the singer and song writer was hired as a global creative director. Shortly after she took the job, some tech blogs blackberry is retreating from the Consumer Market to focus on businesses, governments and other large organizations. Im making the change, guys. I got an iphone. For christmas and i got a mac. Wow. Mac pro . Mac pro. Thats still here. Because i forgot it forgot my christmas presents at my parents house. By next week, i will have everything all set up. Thats cold, isnt it . That is cold. Coaster . Thats horrible. Im sorry, i take that back. You can talk about the transition. Itll be a great live report. Every week you can talk about how it is switching over for all of us who are reluctant switch. Youre Still Holding on . Im Still Holding on. But you have an ipad in front of you. Its making the switch for everything, for all the emails. You just carry one. I looked at ways this morning to see what it was going to cost me to see what its going to cost me to come to work. I have to switch. Can you even get on the internet . I can. Barely. No, the ipad is easier. Its like having a motorola flip phone. In fairness to blackberry, the new blackberries do have internet like the iphone. Really . Yeah, they do. To be balanced. Moving away from the Consumer Market, they gave up on us. They did. Well, maybe theyll come back. Makes me feel not bad. And ive been using the dictation more. I can almost get every word right. Oh, thats good. You dont even have to. And i can do it quickly and you look at it and its i cant get periods and commas. You see some weird things. You see some weird its dictated so maybe the word usually hes so nice to me in the emails. Now i understand. Its the wrong words. Right. One more story to tell you about, the National Retail federation is appealing a 7. 3 billion settlement over swipe fees. The deal will not stop fees from soaring in the future. A federal judge approved that settlement between retailers and card giants. Retailers accused the Card Companies of conspiring to fix transaction fees that are charged to stores for handling credit card payments. General mills says original cheerios are going gmo free. Some cheerios will start appearing on shelves soon. The change does not apply to any other flavor such as apple cinnam cinnamon. Now the company says its also using nongmo corn starch and sugar. My sons are breathing a sigh of relief this morning because this is what they have for breakfast. Lets make sure you dont do any gmo pharmaceuticals or immunotherapies. You know what, whats weird is the same you know, the warmest that are the same people with the gmos. They choose which kind of junk science they choose to believe. Barry knapp and Rebecca Patterson will be coming up. Were going to break. Were going to play music. Good. Lets hear it. There we go. Is that alicia keys . See. Room over the pizza place at 315 chestnut street. The modest first floor bedroom in tallinn, estonia and the dusty basement at 1406 35th street. It is the story of the old dining room table at 25th and hoffman avenue. The southbound bus barreling down i95. And the second floor above the strip mall at roble and el camino. This magic moment it is the story of where every great idea begins. So different and so new where those with endless vision and an equal amount of audaciousness believed they had the power to do more. Time and time again. And then, it happened at dell, were honored to be part of some of the worlds great stories. Stories that began much the same way ours did. In a little dorm room 2713. This magic moment the stock market soared to new heights in 2013. But whether you missed the rally or raked in major profits, where should you be now . Lets get to our guest host this morning, barry knapp and Rebecca Patterson. Im going to start with you, barry, because i remember, you got less bullish midyear, didnt you . Yeah, through the middle of the year, we thought there would be a period of consolidation, a pullback related to the fed policy normalization. You never had an 1850 target . We had an 1,800 target. The day that the fed decided to not taper in september, we knew that the setup for the back half of the year, the final quarter was incredibly bullish. So i changed the price target. You did. From 1600 to 1800. I could name guys, they havent been back on the show, but i can name guys that a year and a half ago were saying dont informs, dont put money in, theres got to be a correction. Dont do it now. They never switch. They missed 30 , probably. 35 and never switched. Look. Either we were going to have another recession back in the summer of 10 or 11 or we werent. And i never believed we were, in the summer of 11, looked like consumption was accelerating. Whats your target for the end of next year . 1,900. Thats 3 . It was about 8 from when we set it back in the beginning of november. But i think the broader will you change that . Its only january 2nd, 3rd. I think the broader point is first of all, what should happen next year, correlation should fall even further, right . Correlation came down a lot last year. What do you mean . Essentially, the value to picking stocks or sectors or industries should go up a lot. Okay. And the divergence between those sectors should go up a lot. What we got right last year in particular was at the beginning of the year we thought, okay, were faced with all this fiscal drag, the big tax hikes, focus on stocks with bondlike characteristics. That worked great for the First Quarter of the year. Became apparent that the economy was warding off the tax hikes, we started to shift towards Global GrowthCapital Spending sensitive sectors and went all in tech and industrials. All right. Thats what worked through the back half of the year. We havent got that much time. Were going to get a quick comment from rebecca and come back to you. Do you do targets . Did you have a target at the beginning of the year . Thats one of the beautiful things not being on the sell side, i dont have to have a target. Weve been overweight equities for over a year. We didnt get cautious where were you the previous three years when it was going up from 666 . We were closer to neutral. Remember, two years ago, if you put money into highyield credit, you made the same return as equities. Last year, at the beginning of the year, we shifted out of credit. We added to our equity overweight during the course of the year and were sticking with our position now. We have sizable overweight to equities. I think if people havent participated yet, its not too late. But i would say, the one thing everyone is convinced today, just put your in s p and youre done. I think thats ridiculous. Yeah. This is a broader point. Yeah. Youre going to have to be in the right sectors, the right part of what this expansion is going to be about. And i think its going to be about Capital Spending, its going to be about the industrial side. Youve got to start like ranting about how the best Hedge Fund Guy still underperformed the averages. That is pathetic that were bragging about 25 . An etf or mutual fund would have been if the hedge funds are doing their job right, youre getting that return with about 6 of the volatility of the market. Hopefully from stock pickers, we always hear, oh, well, its going to be a stock pickers market because theyre selling their own skills instead of index funds. Hopefully youre right and therell be value added to get when they could have stayed in the arranges and done even better. Get on this. There is a little bit of mitigating the risk. Got to be part of it. Buffetts point has always been the counterfactual. It might have been 2 and 20, no way its worth that. When we come back the holidays are behind us. That means its time for the nations retailers to ring up their results and lock ahead to the new year. Well do the same and talk winners and losers. [ male announcer ] this store knows how to handle a saturday crowd. [ male announcer ] the parking lot helps by letting us know whos coming. The carts keep everyone on the right track. The power tools introduce themselves. All the bits and bulbs keep themselves stocked. And the doors even handle the checkout so we can work on that thing thats stuck in the thing. [ female announcer ] today, cisco is connecting the internet of everything. So everyone goes home happy. Welcome back. How is everything . Theres nothing like being your own boss and my customers are really liking your flat rate shipping. Fedex one rate. Really makes my life easier. Maybe a promotion is in order. Good news. I got a new title. And a raise . Management couldnt make that happen. [ male announcer ] introducing fedex one rate. Simple, flat rate shipping with telif fedex. Welcome back, everybody. Brick and Mortar Stores are continuing to make their foray into the online space. Which retailers are winning big on the web . It really seemed like last year was the year for online retailers. If you werent online and if you werent online in a big way it started to affect you last year, right . Absolutely. This holiday was a photo finish between santa and the grinch. And all came down to ecommerce, ended up saving the day. If youre not focused on that for 2014, you could be left off this train. Its left off the station. Who were the best at it . Which of the bigbox retailers . Hands down nordstrom. They are the Gold Standard right now in this integration between technology and retail. They were doing omnichannel well before most other retailers started to coin the phrase. Theyve been working on this project for a very long time. Its cost a lot of dough. And its taken a lot of time. But in the end, theyre going to win by taking up share. Were very favorable in nordstroms. Just from the number of retailers i shopped at, seems like macys did a good job with it. They have their shipping things ready to go and have for a long time. But both stuck out to me as companies who it feels like a seamless process. Customer Service Never goes out of style. And these guys have a relentless pursuit of Customer Service both online and offline. So we think that really watch nordstrom, theyre the Gold Standard. One of the big problems, though, were people who didnt get their packages on time who felt they got burned by this whole situation. And part of that was u. P. S. , fedex, and part was the weather. Anything to do to try to combat that . Well, just getting ahead of it and reminding people, maybe actually personalizing some of those gift lists heading into next year, which you can do more and more with big data every day. Lets face it, the u. S. Consumer procrastinated and dragged their feet. The average guarantee they did it. There were a lot of people who were promised those things would get there by christmas eve. They bought them by the 18th, maybe even sooner and didnt show up on time. How do you fight that . Absolutely. Its true, but something retailers could hopefully use to their advantage because ultimately you can buy online and pick up in stores for a lot of retailers, as well. That instant gratification and guarantee is there. Why not just go to the store and buy it . Absolutely. Okay. Thank you. Thank you. Absolutely. Coming up, 2013 was a record year for auto sales. The final December Numbers due this morning. Were going to ask how the industry could possibly top the performance in 2014. Thats coming up next. Hmm, fifteen minutes could save you fifteen percent or more on Car Insurance. Everybody knows that parker. Well, did you know auctioneers make bad Grocery Store clerks . Thatll be 23. 50. Now. 75, 23. 75, hold em. Hey now do i hear 23. 75 . 24 hey 24 dollar, 24 and a quarter, quarter, now half, 24 and a half and. 75 25 now a quarter, hey 26 and a quarter, do you wanna pay now, you wanna do it, 25 and a quarter sold to the man in the khaki jacket geico. Fifteen minutes could save you. Well, you know. So i can reach ally bank 24 7, but there ar24 7. Branches . Im sorry, im just really reluctant to try new things. Really . Whats wrong with trying new things . Look mommys new vacuum cat screech you feel that in your muscles . I do. Drink water. Its a long story. Well, not having branches lets us give you great rates and service. Id like that. A new way to bank. A better way to save. Ally bank. Your money needs an ally. Welcome back to squawk box on a snowy friday, joe. Ron burgundy here. Here are some of your top stories on the snow ji friday. Cyber Security Company fireeye has acquired mandiant for about 1 billion. Best known for unveiling the Chinese Military unit that believed to behind a series of hacking attacks. Also, facebook is facing a Class Action Lawsuit over claims it monitors users private messages and sells that data to advertisers. The plaintiffs allege the social networking systematically intercepts private messages to obtain that data and then shares it with marketers. Facebook says it believes the allegations are without merit. There was a similar case brought against google with their gmail service. Take a look at futures right now on the snowy friday. Stocks going up after a tough yesterday. Dow looks like 40 points and nasdaq 3 points higher and the s p 500 would open about 2 1 2 points higher. Some parts of massachusetts getting more than a foot of snow this morning. Lets get an update from jackie bruno. Good morning, again. Reporter good morning. You can see behind me the plows are here, trying to clean up the roads. And weve had a lot of front loaders and people shoveling to make sure sidewalks are okay. Theres not a lot of people out here. So really, really popular intersection here in boston. Yet, it looks like a ghost town because people are being told to stay inside their homes. Dont go to work if you dont have to because its just frigid out here. More than the snow, were used to snow, were hearty new englanders, but were not used to this kind of snow with arctic chill. In the car, said it was 4 degrees, but feels a lot worse because the windchill is really making it feel like its well below zero. And it is bitter out here. I mean, bitter. Let me show you what the snow looks like because its really this kind of powdery snow. Really cant make a snowball out of it because its so dry in the area because its any moisture is being sucked out because of the arctic chill out there. Still snowing, has been snowing since late yesterday afternoon and we got some snow before that. This has been a 36hour ordeal for this area. And while well get through it, well handle this, it is very uncomfortable for anybody that has to walk around any time today because were not getting out of the Single Digits all day. So a bitter day for bostonians. At least its not going to thaw and freeze. Going to be that powdery snow. Reporter thats right. It will blow around, though. Easy to stay from the studio. You cant make snowballs. Is it good for sledding . But its too cold to sled today. Well, if you want to sled, it would be fun to sled, i think thad be great. But if youre going to do that, wear your layers. I have hand warmers and toe warmers in right now. I think thats also crucial, too, because it is bitter out here. We need to talk, were going to davos. Get some of those warmer things, chest warmers, i think, too. Awesome. Thank you. Jim ford and the regm, forde automakers are expected to roll out today. Overall, the pace is expected to be about 16 million, increase of 4 , compared to earg year ag. The real focus, where did we end the year in terms of overall sales . The low coming in 2009 when it was 10. 4 million. When its all said and done at the end of today, it should be at about 15. 6 million as the sales pace, the strongest since 2007. By the way, were expected to go above 16 million here in the u. S. Next year. This month will determine the number one brand for sales in 2013 in the u. S. Ford is expected to beat toyota. Theyve got about a 380,000vehicle lead. Sales topping 2. 4 million this year. The other race in the sales industry, the auto sales that people will be looking at. Where a mercedes replace bmw as the top luxury brand in the United States . By the way, mercedes on track for the best years ever with sales topping 300,000 vehicles this year. Its a good reason to celebrate for 2013, they actually picked up market share here in the United States. Not a lot. With sales coming in at at about 45. 3 . The automakers in the u. S. Will be gaining share, really for only the second time in the last 15 years or so. As you take a look at shares for general motors, what will they say on the Conference Calls regarding the outlook for not only january, but the first half of 2014. Again, guys, the expectation in 2014, we see Industry Sales go above 16 million for the entire year. Guys, back to you. We never really thought wed get there again. I guess we shouldve, though, right, phil . The expectation is that wed eventually get back to where we are right now. But i think were almost to the point where were going to see it plateau here in the 16. 2 to 16. 7 range for the next foreseeable three or four years. What was the low . Did we get to ten . 10 1 2 back in 2009. And by the way, the high, 17. 4 million in 2000. 2000 . Thats the alltime high. And the mix back then was more foreign versus domestic . The domestics had a little more market share back then. It was almost 50 50 then. Itll never get back to 50 50. Youre looking at close to the high for the domestic automakers here in that 45 . Its probably going to stay around there, might go a little lower, maybe down to 44 to 43 . Were going to go, now, but solar powered car, is that ever coming . No, no, no, no. Yesterday well, the story was that ford was working on this along with a couple other groups, and the potential in the future for them to potentially tap into solar power as an energy source, thats pretty cool. But, remember, thats what ces is all about, showing possibilities for the future. Are we going to see this any time soon . No. Because, becky, she has had the idea of a windpowered car with like a windmill on the back and its like today might be able to go a solarpowered car. I dont know. Stuck in a snow bank. With us now, he really knows a lot of stuff about this. So to hear it talked about so frivolously. Does it bother you, paul . Where is paul . Where are you . Looks very sunny. Looks like florida. Naples. Im happily in naples, florida. But im flying to new york today, i think. No, youre not. Challenge. Wow, paul. I hear 16 million, you knew this was coming again . I guess all things come back around, dont they . Well, the economys recovered. Not recovering at the pace wed like to see unemployment still high. The average age of the cars on the road today is a very high level. The economys getting better, employment is gaining. So all the factors point in the proper direction. First of all, for detroit, the yen is getting weaker, that lets the japanese price more aggressively. Thats going to be a problem for the detroit companies, i think in 2014. The other thing is leadership changes. The ceo of general motors, mark fields at some point, most likely coming in at ford, ceo. And they have great qualifications. But you never really know until theyre doing the job. Mark fields, theres a goodlooking ceo. So, yeah, he should be handsome man. We shouldve known. Look at why his stock has gone up. Pauls going, what are they talking about now . There was a story earlier, paul, about goodlooking ceos do better so fields, hes a shooin. Handsome man. Yep. I think the shareholders will be interested in other attributes. Thats what i think. This was a dumb story we did earlier, correlating looks. Paul, do you think ford shouldnt allow him to let everyone twist in the wind like this . Well, im not sure whos twisting who. Whether alan wants to leave or ford wants him to leave. You think ford wants him to leave . Im sorry . You think ford wants him to leave . I got the sense this came out of microsoft. Im not sure they actually want him to leave. I think theyre open to him leaving more than it was six or eight months ago. I think basically they know the transitions coming. Mark fields has proved himself as worthy successor in, you know, in the boards eyes. So i think its a matter of months now, really. What difference does six months make in Something Like that . Paul, are people buying big suburbans still and trucks . Is that going to go on forever . These eight cylinder, you know, or is everybody buying smaller, like crossovers . One of the Untold Stories about detroit, i think, is that despite all the emphasis on hybrids and downsizing cars, about 75 of the profits still come from big trucks and suvs in north america. Which is pretty remarkable, actually, thats where all the profits are coming from. And, look, you have the fraccing revolution and i dont think gas prices theyre not going down but theyre not going up, so honestly, i think its one of those things where theres going to be a booming market for big vehicles. And the Companies Like to sell them because they produce profits. Yeah. And, you know, if you have more than two kids or something. You do get one of those second backseats. And i think youre right about that. Weve had people coming on and saying that gas prices were going to go up based on the globe recovering. If we go to trucks with natural gas, theyre going to migrate that way. The market works that way, doesnt it . Absolutely. People like the convenience of big trucks and the space and all that. I remember we had one of the first chrysler minivans that came out in 1984. Our kids were real little then. It was like having little demilitarized zones so they wouldnt kill each other. Right. Are you still there, phil . I am. I love that term. Demilitarized zones. Becky has copped to a minivan, which many of us would not do that. I used to have one. Used to was the operative word. Did you see with the one with the vacuum cleaner . No. One with a builtin vacuum cleaner. Oh, because you have a husband. A builtin vacuum cleaner. Thats what i would get. Yeah. Youre a minivan guy. Im looking for a minivan. Its a great car. Its like having a driving living room. Its awesome. Never had one, did you, joe . No, shoot me first. Three children, never had a minivan. Anyway, lebeau, paul, thank you. Enjoy the weather. Hope you make it back. You should probably be happy youre not making it back at this point. Coming up, if one of your resolutions for 2014 is to eat healthier, then jamba juice may have the right stuff. James whites going to tell us about new push for the smoothie. And a wicked commute for many of you on the east coast. But if you have a snow day, stick with squawk because were coming right back. Look at that live picture of time square right now. 0 thats a good thing, but it doesnt cover everything. Only about 80 of your part b medical expenses. The rest is up to you. So consider an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement insurance plans, they could save you in outofpocket medical costs. Call today to request a free decision guide. With these types of plans, youll be able to visit any doctor or hospital that accepts medicare patients. Plus, there are no networks, and virtually no referrals needed. Join the millions who have already enrolled in the only Medicare Supplement insurance plans endorsed by aarp. And provided by unitedhealthcare insurance company, which has over 30 years of experience behind it. With all the good years ahead, look for the experience and commitment to go the distance with you. Call now to request your free decision guide. Amazon started in a garage. Hewlett packard, and disney both started in garages. Mattel started in a garage. The ramones started in a garage. My point . You never know what kind of greatness can come out of an american garage. Introducing the 2014 motor trend car of the year. The all new cadillac cts. Aint garages great . Welcome back, everybody. In our headlines today, Homeland Security agents have seized more than 6,000 pieces of counterfeit hockey merchandise valued at over 73,000. It was part of an initiative leading up to the winter classic events. Yeah. That was a big deal. You watched and loved it. I did. And the islanders beat the blackhawks last night. Which is not thats not you dont see that every day, andrew, on a snowy friday morning. On a snowy friday morning. Another story on the snowy friday morning. I dont know if these guys do well on a snowy friday morning. Kick off the new year, jamba juice, the new whole food blending and juicing platform, ringing the opening bell at the nasdaq today. Part of the nasdaqs third annual fit week. Plus jamba juice announcing the expansion into the middle east. Good morning to you from a snowy time area. Good morning to you. Good morning, and happy new year. Im a big jamba juice fan, i drink it when i can, but on a snowy day like this, this cannot be good for business, im assuming. We entered the new year and everybodys in resolution season. Were blending in more whole fruits and vegetables. And we think its a perfect time for jamba juice. Im assuming you must do better like ice cream on a hot day, right . We do, but if you think about the expanded fresh squeezed juices were launching, we actually do perfect no matter the weather. Especially if the beverages are a part of your healthy diet. Explain exactly what this new platform is when you talk about whole foods compared to what . What goes on now . And whats changing . Yeah. So think about our whole food blending and juicing platform is really a bit back to the roots of jamba. We are founded as juice club. And as you look at the coastal trend of juicing as a way to get more whole fruits and vegetables into your diet, this is really central to the platform. Youll see us blend in items or juice items like kale and beets and cucumber. You didnt do that before . On a more limited basis. Weve always had the broadest fresh squeezed juice platform in the industry and we blended things like whole carrots and oranges and wheat grass, but this is a significant expansion to the offering. Are you going to get into the cleansing business, you know . We keep having weve had a number of people come on that are into literally drinking drinks. Breakfast, lunch, dinner, its sort of a sometimes can be a five or sixbottle a day program. I think youll see us play a part in the juicing rituals is the way i would describe it. Lots of consumers, including myself will add healthy juices as a part of a meal replacement or supplement a healthy diet. James, i dont know if you saw this, but they cut the rating to neutral this morning. Talking about cooler weather in california, saying that has hurt some of the traffic in the stores. Also pointed out that some of the promotions you offered last year like a buy one, get one free for some of the smoothies, you werent having some of the same promotions. Can you address that . Yeah, i guess a couple points i would make, we are actually pleased with the way we finished the Fourth Quarter and the full year. Well report officially our numbers a little bit later in the year for the quarter and the full year. But were actually pleased with the finish. And i think were even more excited about the prospects on a go forward basis as we look at the announcement this morning about the entry into the middle east. That brings our pipeline of International Locations to 480 if you think about the middle east being added to previously announced markets. Mexico, canada, the philippines and south korea. When you say middle east, are you all countries in the middle east or certain places you will not open . Theres a handful of countries. Youll see us open in uae and dubai probably first. Bahrain, qatar, there are four or five countries that will open 80 locations over the course of the next ten years or so. Over the next ten years or so. Okay, last and this is a selfish question. Just to sort of personal, practical issue. When you drink these drinks, should i consider them a meal . Because i this is theyre very caloric, a lot of them. How do you do it . I think the way we would have you to think about it. Weve got many, many drinks on our menu that would be less than 250 calories. And we also have things more in it. I think it depends, and weve got a solution depending on how you want to use the brand. The idea behind our whole food blending and juicing platform is for folks that are looking for a boost a healthy regiment. Theres also offerings like the ones we offer today that we think are a good meal replacement and a healthy start to a Weight Management regimen. Are you going to get into the hot Beverage Business . You can expect more to come from us going forward. Id take a hot beverage from jamba juice. Like a cider . What do you do . Ciders and teas and weve done organic coffees. Okay. Were going to leave it there. Good luck, stay warm in time square. Happy new year. Thanks for having me on. Thank you. Cleansing. Take a lot of how many bottles . To wash my hair . To cleanse, you dont actually youre talking, youre cleansing you know about that. Kenny g. I dont cleanse. You guys had it on on the money. What are they called . Generation juice. Juice generation . Is it better to cleanse from here . Which is the better cleansing alternative . Do you cleanse both . Start at the top and work your way down. External a lot of people think you just go to the source to cleanse. No. No . Thatd be one way to do it. A lot of people do. They swear by that. I think these days people do both. Thats what i meant. Cover all your bases. Next, sectors to shake up the new year, plus las vegas is looking to up the ante for tourists and gamblers. Jane wells is going to tell us how to do that during the next half hour. [ male announcer ] this is the story of the little room over the pizza place at 315 chestnut street. The modest first floor bedroom in tallinn, estonia and the dusty basement at 1406 35th street. It is the story of the old dining room table at 25th and hoffman avenue. The southbound bus barreling down i95. And the second floor above the strip mall at roble and el camino. This magic moment it is the story of where every great idea begins. So different and so new where those with endless vision and an equal amount of audaciousness believed they had the power to do more. Time and time again. And then, it happened at dell, were honored to be part of some of the worlds great stories. Stories that began much the same way ours did. In a little dorm room 2713. This magic moment welcome back, everybody. Lets find out which sectors our guest hosts like and which ones they dislike for the new year. Barry knapp is the head of portfolio strategy at barclays. And, barry, if you had a sector you liked, which would it be . The industrial sector. And we do buy into this Industrial Renaissance of u. S. Manufacturing, strong Capital Spending cycle. Additionally, what happened in 94 when the fed started normalizing and, again, in 04, the market told you what was going to work through the cycle, a little bit of the tides going out. You can see who is wearing a bathing suit. In 94, it was tech, in 2004, it was energy. The best performer since the end of april has been the industrial sector. We think that will be probably the best, biggest winner through the whole cycle. Youre bottoms up, if you had to break it down one way or another, whats something we could look to . The one thing i would focus on in the year ahead is staying very cautious and very differentiated on emerging markets. Im going to take a regional view rather than a sector view. I think despite relatively attractive valuations, they will again this year. A lot of big elections coming up this year, brazil, india, south africa, a number of those countries, policy uncertainty, inflation staying high. I think growth will be a challenge there. And those markets are going to stay very fragile. You have to be very selective which e. M. You go after. Fragile five. Avoid the fragile five. Were going to talk more about this. Rebecca and barry with us throughout the show. When we come back, though, a foot of snow is not going to stop economists from gathering to see ben bernanke speak today. James poterba, well get the forecast for the economy. This is the guy who officially calls whether were in a recession or not. Also, thousands of flights have been canceled. Well get an update from jetblue about this weekends travel conditions. Squawk box plows ahead right after this. Female announcer ] what if the next big thing, isnt a thing at all . Its lots of things. All waking up. Connecting to the global phenomenon we call the internet of everything. Its going to be amazing. And exciting. And maybe, most remarkably, not that far away. Were going to wake the world up. And watch, with eyes wide, as it gets to work. Cisco. Tomorrow starts here. A winter blast for the east coast. A wicked morning commute, thousands of flights canceled. Were going to be getting an update from jetblue c. O. O. No snow in vegas, but blizzard of construction. Billions of dollars in new projects. And it doesnt matter how cold it gets, investors are always looking for the next hot stock. Hey, squawk box, thats hot. Well get mid and large cap stock picks for 2014 as squawk box begins right now. Welcome back to squawk box here on cnbc, first in business worldwide. Im joe kernan along with becky quick and Andrew Ross Sorkin. Rebecca patterson is chief Investment Officer, thats an old, old name and cnbc contributor. It had something to do with andrew carnegie, didnt it . Henry phipps, and he sold his share of this deal company and invested that money about 107 years ago. So, yes, the firms been around a long time. And it started see, id like that. This Investment Firm came from one guys money. And he did it himself. Right. We need to remember that things like that can happen here. 90 billion plus . Under supervision. Yep. And youre the chief Investment Officer . Not like it, i am it. You are it. If you dont like someone, you can fire them, basically. If their performance is bad, its like theyre out the door. Well, people are going to underperform for different parts of cycles. You dont want to fire too quickly. I think we have a great team. I dont see any need to be firing anybody. But in theory, yes, i could. And youre a contribute to here, too . I am. Youve got that going for you. Barry knapp is head of u. S. Equity portfolio strategy at barclays. I have to say really good things about you, too, i think. Dont i . Your call, joe. How much is barclays managing in this country, do you think . I dont know. Have you lost some or something . No, a lot. I do know that our assets are bigger than the gdp of great britain. There you go. Which wouldve meant something as a true superpower. Is there even a navy over there . Remember the british navy, what happened . You do know im american, right . I do. I do. But you still have to kick the uk butt, dont you . Becky has some of our top stories. Lets start with the futures this morning after thursdays losses. You did see, again, the dow down by about 135 points yesterday. By the way, stocks, this is the first time theyve opened down in six years. Dow futures up by about 40 points above fair value. S p futures up by 3 1 2 points. Also watching the price of oil this morning. Yesterday, it was the socalled death clause came into play. Its a technical issue, thats why traders said you saw that down by about 5 yesterday. Big drop yesterday, continuing today, its only down by about 2 cents. Also, one of americas iconic cereals has jumped into an international controversy. General mills says itll begin producing cheerios free of genetically modified content. Many Big Food Companies have maintained theres no evidence that use of genetically modified content causes health problems. But, still, in this case, General Mills has thrown in the towel. No longer. Today well also be getting the latest sales figures from u. S. Automakers. Edmonds. Com estimates that december sales will be up by 5. 2 compared to december of 2012. And we have chrysler results just in. Up by 5. 7 in december. Edmonds. Com had projected an 8. 3 increase. That is a little below what had been expected. Right now, lets get an update from ron mott in boston. Good morning. Reporter good morning to you. You know, its hard for me to describe to you how cold it is here in boston today. Its about three degrees right now with a windchill maybe minus 10 to minus 12. It is very cold. And what this storm proved if anything is that Weather Forecasting is still very much an art even though theres a lot of Science Behind it. Almost no one predicted this much snow. In boston yesterday, downtown, record 10. 6 inches, we think total about 14 inches. Were dealing with about 2 feet of snow. But fortunately, this is light, fluffy stuff. Easier to clean up than the storms we saw a couple of weeks ago. Downtown, its almost vacant. A lot of folks staying home. Kids off from school. Its a threeday weekend for a lot of folks. Theyll spend the week cleaning up in the snow. But this snow packed a good punch. This was a real serious storm here in the boston and northeast area. Andrew, back to you. Thank you for that. Stay warm out there. In the meantime, well get an update on air traffic. Joining us now on the squawk news line, the c. O. O. Of jetblue. Good morning to you. Good morning. Great to have you on. Give us a sense from where you stand where the delays are, what kind of cancellations and how long this is going to last. Well, this is a huge storm for us. Our planning began several days ago, monday into tuesday and i think our approach to weather like this is when mother natures going to win, you let her win. One, we want to secure our assets, really thats our equipment and our people. We want to take really good care of our customers and we want to execute our plan and let customers know what were doing. Broadly speaking, we ceased a majority of our operations by 8 00 p. M. Last night and weve got about 50 schedule reduction for all the new york airports and about 100 schedule reduction for all of new england including boston where were the largest carrier there through about noon today. Well slowly start up things later this afternoon. Theres a lot of delays in the system. And every storm presents different challenges. This one with the light blowing snow and the freezing temperatures makes deicing and snow removal very difficult for the airport. So flights that are supposed to take off later today have a decent chance of taking off . Or most will be delayed . Our cancellation totals are about 400 right now, andrew. Theres going to be some additional cancellations as some airplanes and our crews are in places they dont quite belong in as conditions have changed throughout this storm. I think particularly for this afternoon and evening, i think we may see a lot of delays and extensive delays. But i think were planning on resuming operations today. Okay. If i am a customer right now and im supposed to be on one of these planes and i need to rebook, what should i do . Well, you can go online and rebook if youre a jetblue customer. But i think were very proactive when we do cancel flights. We proactively reach out to customers via email and also phone calls. We have some automation that helps us with that. But were very proactive in the event that a flight is canceled. The one thing i would tell customers, though, absolutely check your flight status at jetblue. Com. When we get into situations like this, were the only ones that have all the nonpublic information that really in an event like this. Whats the nonpublic information . You go to a lot of the public websites that probably aggregate a lot of publicly available information like faa data. But an event like this, people dont know where our airplanes are. They dont know if were going to swap an aircraft for another for a particular flight. So our information is by far the most accurate. If i try to rebook and im failing, should i call you or not . And if i beg and plead and be very nice, do i get any special attention . Well, weve got all of our team activated in our call centers ready to receive calls. No, he meant you, rob. He did mean you. Yeah. He meant you. Im not traveling this weekend happily. But, rob, really. Sometimes i think, oh, im going online, failing miserably, now im going to call the line but wait half hour or whatever. Is that worth doing . I think if youre on a canceled flight. But if there is no change, id reserve those phone calls for people that are on canceled flights. I think just being a little patient. This is primarily a returning from holiday vacation issue for us. It may take a little bit longer. Okay. Were going to let you go. But real quick, you think this is going to run through the weekend, saturday, sunday, those folks who are down in florida, for example, trying to get back by work on monday . Still going to have some people struggling . I think well be running a full schedule by sunday. Itll take us a couple of days to get back to where they should be. Good luck with what i imagine will be a crazy 24 hours. Thanks, guys. You dont have his phone number. I dont. You want to ask him that . As you know, i dont have any special treatment. You do need to reach out, though. I love jetblue, im a huge fan, but we had a situation last week where they changed our flight two months ago and there was no update. We got to an airport and there was no flight and itd taken out you do need to be proactive. Im not going to throw them under the bus. You just did. Now he cant defend himself. No, they did try to make up for it on the plane, we all got free movies. There you go. Andrews going to be talking to him later today. You can tell him if you want to pass anything along. I think its a great airline. But you cant rely on just them sending stuff to you. You need to reach out. When you said call you, some people thought you meant the royal you. You meant no, i did not. I wanted to know where to call. What do you mean . Hes chief operating officer. You call him. Jetblue flies out of newark now, too. They dont fly out of everyone is tweeting the same thing about us going to davos. Are you going to give us a ride on our jet . Are we allowed . The flights full. Right now, its what he always tells me. Right now, lets get to Steve Liesman. Hes in philadelphia. He once spent no, im not going to say that. Anyway, the American EconomicAssociations Annual meeting. Hes down there, joins us with a special guest in the city of brotherly love on the finest cities in the world. Steve . Yes, on this what were you saying earlier . This snowy friday morning. Snowy friday morning. And i am with jim poterba. Just a quick word on the conference. Going to be some 11,000 participants here. 520 presences on everything from productivity to Economic Growth to health care and aging and all that stuff. Jim, thanks for joining us this morning. Pleasure to be back. Youre also professor of economics at m. I. T. Jim, give us an overview of where you think we are coming out of this crisis. Its five years since we fell into this hole. And where are we in digging ourselves out right now . I think it seems like the u. S. Economy in particular is healing. Were beginning to see some real signs of traction both in Consumer Spending which was strong in the latter half of 2014, starting to see improvements on the fiscal side, our deficit numbers projected at this point are down to under 4 of gdp. And theres a real sense, i think, of optimism in some sectors. The Real Estate Market has begun to bubble back. I think theres going to be a lot of folks when they open their year end emails from their retirement plans or from their brokerage accounts who are pleasantly surprised at how much the stock market increase of 2013 has added to their Balance Sheets. So i think thats going to also give us a little tail wind as we move into the new year. It also appears as if from the Federal Reserve standpoint but maybe other Central Banks around the world while we get this better growth, might be a period of tightening when it comes to monetary policy, or at least less stimulus out there. I think the way i would characterize it as a move back toward business as usual. One of the challenges weve seen in the last few years is a set of extraordinary policy measures. And as we as the reaction to the potential for tapering in the last couple of months has indicated, the markets are waiting for a signal and understanding of when were moving back to business as usual. Not exactly when, but a sign thats something we can begin to do. And i think the very strong favorable reaction to the Federal Reserves announcement last month was partly a sigh of relief that were beginning to move down that path. Were in a period where monetary and fiscal policy is playing a bigger role in determining where the economy is heading than in normal times. And consequently, the role that the policy makers have and the weight thats placed on their determinations is much greater at this time. And it would be better if it was less consequential. In normal times, thats not where we are. One of the things you look at when you look at this enormous amount of research, its five years after and theyre going to be doing a lot of studying of t. A. R. P. Of the fed monetary policy. What are researchers finding in terms of the right thing to do, the wrong thing to do. Should it be part of the playbook for the future . Steve, i would say Economics Research is a lagging indicator. Right. Were following what the policies did and takes a long time for data to arrive and the research itself to be carried out. I think were beginning to see studies of microeconomic studies, cash for clunkers or some of the housing policies as well as the macro policies which could take, you know, all of the different kinds of extraordinary monitoring actions weve seen. And i think, you know, right wrong is a little difficult to judge based on the kind of studies were seeing. Were starting to describe, did they matter . Did they have consequences . So, for example, cash for clunkers, i think theres now pretty clear evidence compari comparing just to give you a sense of how this works. Different states within the United States had different pools of vehicles. Of eligible for cash for clunkers. You could compare states where folks could take advantage of that program. And you can try to see, does it look as though more new cars purchased . Theres clear evidence there were. Cash for clunkers did manage to get more people purchasing new cars pulled forward. Pulled forward demand. Now the tricky question is how far did it pull it . And in that case, the evidence seems to be a few months, within a year, Something Like that. That may be what you need in the real bottom of the recession. But doesnt look as if it pulled demand from many years into the future. And made a longterm difference. Youre going to be presenting an important lecture here later today and aging is one of the concepts youre going to be talking about. And theres a big concern out there. With the aging of the population that asset prices are going to tank because these people are going to move from risky assets to riskfree assets. Is that a serious concern that investors should have right now . Its a concern ive heard a lot. Theyre going to flip a switch and move their assets or decide to sell their assets. Im not particularly concerned about that, steve, for two reasons. One, most of the evidence we have on how investors and savers behave as they move into and through retirement is that they very gradually, if at all, start to draw down their assets especially in the early years of retirement. I dont think theres anything that looks like going across a cliff there. The second thing very important is asset prices are determined. The demand for assets is a Global Economy. And focusing just on u. S. Households and u. S. Baby boomers, i think, especially for global markets, that seems to be a very narrow perspective on that problem. You really need to focus on global demography, on the demand globally for assets. As we look out to the aging and retirement of the baby boomers, 20 to 30 in the u. S. The demand for a lot of the Financial Assets may have more to do with, you know, growth in china, growth in india. The premium on the u. S. To keep its markets to be attractive globally. Absolutely. And the economy to be attractive globally. Absolutely. Jim, thanks for joining us today, and hopefully you wont come back to talk about a recession any time soon. Thank you, steve. Coming up, wall street cracking down on cockroaches. Well explain that story next. Then jane wells will tell us about big plans for the strips. As we head to a break, though, check out some of our lineup for next week. Surprises for 2014 and then weve got chicago mayor rahm emanuel and steve forbes. Big week for us. Squawk box coming back right after this. Liking your flat rate shipping. Y fedex one rate. Really makes my life easier. Maybe a promotion is in order. Good news. I got a new title. And a raise . Management couldnt make that happen. [ male announcer ] introducing fedex one rate. Simple, flat rate shipping with the reliability of fedex. Welcome back to squawk box this morning. Making headlines. Regulators promising to crack down on what is called cockroaching among financial brokers. Forming a group to examine activities of stockbrokers with long track records of violations and investor complaints. Cockroaching, in quotes, refers to stockbrokers with troubled records moving from one problem firm to another. Hmm. Do we know any . Do they show up on our show . I hope not. Maybe theyre in the movie. The wolf of wall street, right . Actually. Youre going to go see it. Cockroach was here, actually. Anyway, time for a change of chance of scenery. You have to give us a chance of scenery out there. I think we meant change. Lets see what jane wells has coming up. Cookies and cream, you and vegas. Reporter oh, well, you know, joe, the vegas recovery has been kind of like the u. S. Recovery, tepid. But check out that flashing thing behind me. Its new development, the link by caesars here on the strip. Things are warming up. I know youre cold back there, but look at the video of what its like on the strip, the first week of january 14. More when we come back. [ male announcer ] this is the story of the little room over the pizza place at 315 chestnut street. The modest first floor bedroom in tallinn, estonia and the dusty basement at 1406 35th street. It is the story of the old dining room table at 25th and hoffman avenue. The southbound bus barreling down i95. And the second floor above the strip mall at roble and el camino. This magic moment it is the story of where every great idea begins. So different and so new where those with endless vision and an equal amount of audaciousness believed they had the power to do more. Time and time again. And then, it happened at dell, were honored to be part of some of the worlds great stories. Stories that began much the same way ours did. In a little dorm room 2713. This magic moment this magic moment and it feels like your lifeate revolves around your symptoms, ask your gastroenterologist about humira adalimumab. Humira has been proven to work for adults who have tried other medications but still experience the symptoms of moderate to severe crohns disease. In clinical studies, the majority of patients on humira saw significant symptom relief, and many achieved remission. Humira can lower your ability to fight infections, including tuberculosis. Serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer, have happened. Blood, liver and nervous system problems, serious allergic reactions, and new or worsening Heart Failure have occurred. Before starting humira, your doctor should test you for tb. Ask your doctor if you live in or have been to a region where certain fungal infections are common. Tell your doctor if you have had tb, hepatitis b, are prone to infections, or have symptoms such as fever, fatigue, cough, or sores. You should not start humira if you have any kind of infection. Ask your gastroenterologist about humira today. Remission is possible. Sin city looking for a turn around. And its starting with the strip. Jane wells joins us now from las vegas. Its like three hours, right . How far was the drive . Did you drive . Reporter i actually flew. And you know what, the flight from l. A. To vegas the day after new years was pretty crowded. Heres the deal on new years, early estimates show it was probably flat with last year, about 335,000 people. And while vegas will set a new record for 2013 of nearly 40 million visitors, overall spend is still about. 25 below of what it was before the recession. Look at what may be the most hopeful sign here in a long time, investment. There are 9 billion worth of projects underway like the sls, and not far from the still unfinished fountain blue. But most breast intereinteresti company, a multibillion dollar project to take over stalled development that turned it into a major destination for gamers. Because las vegas, one of the ways it wants to recover is increase the share of business from International Visitors from 17 to 37 . There are more international flights, the airport has a new terminal. Bill lerner says macau is helping drive travel here. That sin city is only in the quote first or second inning of attracting visitors from mainland china. Now, the largest player, of course, is mgm resorts, but will a new project siphon off players . And is vegas healthy enough yet for more rooms . I jim murren. There wont be any new capacity in 2014 and 2015. Itll start in 2016. At which point id expect our occupancy rates would be higher than they are now with better room rates and well have about 45 million, 46 Million People visiting by that time. I think itll bring more people hes not feeling any competition, the heat from anybody coming here at this point. And, in fact, perhaps, the biggest sign that vegas is recovering is that mgm resorts is planning to build on the strip. Plans to build an arena that could host an nhl team. 2014, most analysts are saying, guys, slow and steady as she goes. However, later on squawk on the street, most of the gaming revenue from this town comes from slots and young people arent that interested in playing them. Back to you. Jane, thank you. When we come back, were going to try to warm things up with a few hot stock picks. Also, jpmorgans chief economist, hell give us his view of the Global Economy and which regions will take the lead in 2014. Right now, though, as we head to a break, take a look at the price of crude oil down sharply yesterday. You can see right now down about 19 cents. 9,525 after settling in 100 before this. Squawk box will be right back. Just by talking to a helmet. It grabbed the patients record before we even picked him up. It found out the doctor we needed was at st. Annes. Wiggle your toes. [ driver ] and it got his okay on treatment from miles away. It even pulled strings with the stoplights. My ambulance talks with smoke alarms and pilots and stadiums. But, of course, its a good listener too. [ female announcer ] today cisco is connecting the internet of everything. So everything works like never before. [ female announcer ] today cisco is connecting the internet of everything. So ally bank really has no hthats right, no hidden fees. S . Its just that im worried about, you know, hidden things. Ok, whys that . Well uhhh. Surprise um. Well, its true. At ally there are no hidden fees. Not one. Thats nice. No hidden fees, no worries. Ally bank. Your money needs an ally. Welcome back to squawk box. Youve heard about bitcoin and kanye west, but what about coinye west . Theres a new Digital Currency later this month inspired by the musician or singer. But west has no connection to the project. The anonymous creators. Hes going to want a piece of the action. If you know kanye west. I dont think hes a rapper. We had him as a rapper. Hes a rapper sort of but a businessman is what he is. And he reached out. Creators began promoting the currency late last year. They say their goal is to set up a more userfriendly version of bitcoin with a relatable face on it. To help users do things like buying concert tickets. Theres a whole thing on twitter about celebrity currencies. Everyones trying to make quick money before we figure out who is the winner. He thinks hes like steve jobs. I know. Hes upset with nike because nike, they made a shoe and, he cant be thrilled about it. Hes a little, you know, he does really well. Hes a little delusional, he started believing his own stuff. How would you characterize him . Hes a member of the kardashian family. I saw bruce the other day. Theyre part of the nbc family, so part of my family, as well. I was watching a little bit of Michael Douglas as lee. And he was trying to sleep and his eyes were open. As liberace. Yeah. You know, you get so much work where you cant close your eyes. Matt damons going li, li, youre snoring. And he said, i dont care how bad i look. From liberace to im going to keep it real. Im with you. You dont want to be ceo that bad. I dont want to be ceo that bad. From liberace and the kardashians to rick santelli. Were going to see what hes watching in chicago today. No work done, and he looks the better for it. Totally natural. Yeah. Whats on tap for this is it snowing in chicago, too, by the way, rick . Pardon . Is it snowing in chicago . Weve been doing weather all morning. The snowing is taking a bit of a hiatus. The temperatures dropped, though. When i was driving to the train today, the vehicle before it hit the wind was minus eight and the feel temperature for monday is supposed to be minus 45. Its now become more of a temperature issue. Well get back into the snow, i guess, tuesday, wednesday. Down here, hey, joe, you should be happy. Down here, they have a new pit, the joe coinan pit. Thats a darn good name. I think so. Yeah. There you go. Finally, rick, are people into the bitcoin and all these things down on the floor . Well, ill tell you what, down here they really kind of make fun of the bitcoin. Once again, they made fun of the equity rally, but they were long. They make fun of bitcoins, but if theres a way they can honestly make a buck on it, they will. Down here, the notion of bitcoin is too i dont know, at a time where were supposed to be as transparent as possible and it wasnt true in politics and certainly isnt true. You know, think of about the algorithmic and many of the traders have moved from traditional traders to really kind of i. T. Technical traders and programmers. So the notion of a bitcoin and the underlying algorithms, theres a lot of suspicion down here regarding that aspect. Okay. Go ahead. Rick, this is barry knapp, is euro dollar pit starting to hike up a little bit . Im sure youve seen what happened to 2013 contracts since the tapering decision. Thats been where a lot of the action is. Is there more activity down there . People getting focused on that . No, barry, you nailed it. Down here, the big fundamental for Foreign Exchange is the same fundamental theyve gotten used to in the Interest Rate market. And that is management, intervention, and programs and liquidity. So, you know, the yen trade really underscored that dynamic the most. You know, traders were selling the yen aggressively because, of course, abes relative size of what hes doing to ease quantitative easing. Traders down here nailed it. In other words, when you pick up a paper a couple of months ago, the notion was, well, if tapering is going to begin and qes going to end, thats going to be bullish for the dollar because it was a dollar buster. Thats not the way it worked out. It became a relative qe trade. Okay. Rick santelli in chicago, thank you for that. Stay warm if you can. Economic data pointing to continued growth in the new year. Joining us now for his outlook of 2014 is bruce kazman. Are you in the camp that is looking for potentially this to be a year of 3 growth . I think for the u. S. , 3 and i think for the Global Economy basically an above trend year. It looks to us like weve got an environment in which weve taken out the policy risks both domestically and internationally. Weve got our fiscal drags fading. And i think the private sector is in a position where it can really provide a boost to growth as we move forward here. I think all things are set up for pretty solid growth in 2014. I think the question were going to be focusing on is whether were actually healing. Whether were actually getting growth thats actually going to provide us with strong investment Capital Spending, return in terms of the labor supply. Things that heal this economy and get us on a more solid longer term track. Hey, bruce, its Rebecca Patterson. Good morning. When youre looking at capex, when youre trying to see whats going to drive that demand, are there specific Economic Data releases you focus on most for the viewers for cnbc, are there one or two data points they should really focus on to see if that trends playing out . Well, i think where were focusing on business surveys right now in the High Frequency space. That gives us, i think, the quickest read on where Business Sentiment is. A broad sense not just in the u. S. But globally whats happening. And then i think when you look at the u. S. Data, i think you have to try to extract patterns from a wide range of numbers, which often times are giving you kind of mixed signals. The business spending data had been weak in the second half of the year, but theyre starting to turn up now. We have had better news, consumers better news in the labor market. And i think things are coming together right now. Business surveys sending a clear message for a few months that things are going to pick up and now the datas starting to come into the picture showing that emerging. Bruce, id be curious for your thoughts on what the big surge in inventory investment. I know most people viewed it as almost mean reverting if we get this big payback in the Fourth Quarter. If you look at inventory sales ratios, theyre fairly low. You look at the ism surveys, for me its the part of this whole Corporate Risk aversion thats fading and theyre investing in inventories, capital, in labor. You know, as part of that Public Policy uncertainty falling. Do you agree with that . Am i you think im on to something there . How would you view that . Well, i do think we had an inventory build in the second half of the year thats going to run off a little bit. And one of the reasons not to get too excited about growth in the near term. But i think in a basic way, youre right. Where the demand of the economys been in the goods producing industries, where the demand has come from, i think, in recent months from businesses getting more comfortable. And i think inventorys a part of that. And i think the underlying trend is going to stay solid. Id say a 70 billion run rate is not unreasonable. There wont be a drag here, and i think globally inventories are lean. I think from the Global Manufacturing point of view, theres as positive in the pipeline. Did it say you were expecting 3 growth in the United States . And were questioning if thats going to be good enough. Thats a problem we wouldve begged for earlier. Well, i think 3 growth from the perspective of ten years ago would have been business as usual. Now were looking at that as something thats going to be popping champagne corks. And i think that tells you how much our standards have changed. We are in a world where weve had very slow growth for a long period of time after a deep recession. Weve dug ourselves a very deep hole here. 3 growth is something we should be happy about here. It doesnt get you the kind of healing, at least not very quickly, and i think thats the call that matters over the next two to three years. How much of that healing can we look forward to. Thanks for joining us this morning. Thank you. Coming up next, stock picking for 2014. This time, mid and large cap names that could work out for your portfolio. Check out some of next weeks lineup. Chicago mayor rahm emanuel, and steve forbes. Plus, the jobs report, wasnt the first friday, but its next friday. Mmhmm. More squawk next. So ally bank really has no hidden fees on savings accounts . Thats right, no hidden fees. Its just that im worried about, you know, hidden things. Ok, whys that . Well uhhh. Surprise um. Well, its true. At ally there are no hidden fees. Not one. Thats nice. No hidden fees, no worries. Ally bank. Your money needs an ally. [ male announcer ] this is kevin. To prove to you that aleve is the better choice for him, hes agreed to give it up. Thats today . [ male announcer ] well be with him all day as he goes back to taking tylenol. I was okay, but after lunch my knee started to hurt again. And now ive got to take more pills. Yup. Another pill stop. Can i get my aleve back yet . For my pain, i want my aleve. [ male announcer ] look for the easyopen red arthritis cap. It is a second trading day of the new year, and were looking a little better premarket than we did yesterday. How about some individual picks that might work out . Jim kiefer is going to help us with that. Hes Portfolio Manager of the fivestar artisan mid cap value fund. Morning, jim. Morning. All new stocks this year . Or these are stocks that did well last year, as well . These are stocks i would place in the laggards category with whats going on with the large returns. I dont think you want to be chasing names that have already done well. Even though sometimes stocks that hit highs continue to hit highs and the converse is true . Stocks that hit lows. Can hit new lows until they go to zero. Thats certainly true. Thats one of the vulnerabilities, and one of the reasons you hire someone like ourselves. Okay. What are they . Give us some that we can actually just like we could buy if we wanted. How about a name like lowes. Not the Hardware Store but the conglomera conglomerate. You sometimes have the tisch family on your show. There are Energy Assets in this country, and theres a pipeline, an offshore rig company, theres an insurance company. A number of the holdings are publicly traded. Sells at a discount to some of those assets. And they have a big chunk of cash. Theyve shown a great record of building value over time. Nice stock that isnt going to do anything in a red hot market for you. But you give it time, theyre going to compound with a nice mind frame toward risk. Nice guy, jim, john tisch, hes not bad. Going to be on your show in a few weeks. Not bad. I could see how someone would consider them attractive. All right. Were going to do that with all the ceos. After this article we had in the show about whether you need to be attractive to be a ceo. And youre not so bad yourself either. Lets go on whats next . Western union. Western union, thats been a volatile stock. And its been volatile for selfinflicted reasons. Its been volatile for competitive reasons. When you get down to it, though, its about money transfer, continues to be a thriving business, its growing. Its, you know, with immigration going on, all this money to be sent back home. And this is a company thats gone through a little bit of a transition right now, relative to their competition. There are a lot of ankle biters going on at the moment. But this is the industry leader. This is the goto company in wiring money. If a bitcoin or a joe coinan became the new currency, would that affect western . Im sure, you know, they may already be on that game. Maybe you can wire bitcoins. The joe coinan. Nordstrom has lagged a little . Strong of late, but its lagged on a fullyear basis. Probably one id pay closer attention to on a pullback. Youve got the famous partner store, youve got the Nordstrom Rack off price brand not as many people are familiar with. Thats a thriving concept showing a lot of growth. Theyve had Great Success online. Youve got three outstanding businesses. I think part of the appeal is they have somewhere to go with their money. Weve heard so much about these companies accumulating cash, not having anywhere to reinvest. They have a good area to reinvest. I could argue to you some of the parts are still cheap if i wanted to push the price for their Nordstrom Rack operation. Id say for those who lean more aggressively in valuations, you can go at it, for others, id hold back. And you also like oracle. We cant really necessarily go into all your reasons, although i know oracle after years of outperformance, it did take a breather last year. Yeah, its been treated like yesterdays hero and its not. Great company, ferocious competitors running the company, clouds of threat and theyll be in the game. Being treated at run of the mill price in a market that trades much less Significant Companies in more significant prices. All right. Okay. Western unions got to watch out for the joe coinan as the new currency. I think weve got a shot. Its kind of cool. Thats a kernancy. There was a new president just elected in madagascar, a former finance minister. Just wait, his name wow. Ive been practicing. Wow. Finally got a drivers license. Did you see that the other day . Did you see it . I had to write it out phonetically to remember it. Is that the first election of 2014 . Might be. Can we put that in the prompter for andrew in the next segment . Did you look at this . You had to go there. Ill practice during the break, and we will see. When we come back, well check in with jim cramer. Its going to take a little more than old man winter to keep him from his post. Well find out what hes watching after yesterdays opening day selloff. Yeah, hes clean, boss. Now listen to me, duck. I have an associate that met with, uh, an unfortunate accident. While hes been incapacitated, somebodys been paying him cash. Now, is this your doing . Aflac . Now, if i met with some such accident, would aflac pay me . Nice. This is your stop. [ male announcer ] find out what aflac can do for you and your family. Aflac . [ male announcer ]. At aflac. Com. Welcome back to squawk box, everybody. The futures looking a bill all right this morning, up 45 points above fair value. Lets get down to the new york stock exchange. Jim cramer is standing by. I saw you up very early this morning, trying to get down to business, getting things ready. Serving tables. He woke up before me. Jimmy, i said im going to send my eggs back, im going to want more butter. Im going to run you ragged. Can i actually make a reservation there . Sure. Most people do expedia. The web has made it so that you dont need to have a 24hour inn keeper. You give it to expedia, the next morning you see your rooms are booked and they handle your checkerboard, which is what our inn keepers call your checkin list. Would you tuck me in . You know weeks had one year that was very tough, couldnt figure out whether inn, bed or breakfast, community wasnt sure of it. Were booked probably 90 of the time. Were booked because were less money than the other guys and because people actually like a family operation. They give you stock tips with the eggs. I buy the bagels at bagels for you, theyre pretty good. I stop off at sids, dunkin donu donuts. Some of the people dont know my coffee, we have to make a change there. You look at where the dollar is and oil is headed it was front seat back seat day. I still think there was a lot of profit taking. It was very thin. You know there was nobody on the road other than you, becky, thats why you were tweeting that. If someone comes in and does a big sell program, we will be down. Theres no one around. Next week, jim . Next week will be a big week. I think youll be pleasantly surprised by a lot of the industrials. Everyone feels a little more confident because the government seems to disappear from the equation for at least a little while. Last night i missed the game, which i would have loved to have seen. Did you stay up . They made me stay in a hotel near morning joe so i was able to catch scores near the end of the day. Between the guy next to me screaming at the woman and the elevator that kept going banging and stuff, i could barely concentrate. We got big games, yours on saturday. Im very excited about yours. I dont know which andy dalton is going to show up. The dalton thats given me 40 in fantasy and the dalton thats given me 4. All right, anyway, big weekend for the playoffs. Huge. Thank you, jim. See you in just a fumes. I cook. Look, i apologize to the finance minister and im sure that he does maybe well get him on the show someday. There you go. You remember what happened in cypress. Who knows. Madagascar. Who knows what the currency is. Maybe theyll adopt the kernancy. 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Tdd 18886486021 open an account and earn 300 commissionfree online trades. Tdd 18886486021 call 18886486021 to learn more. Tdd 18886486021 so you can take charge tdd 18886486021 of your trading. Theres nothing like being your own boss and my customers are really liking your flat rate shipping. Fedex one rate. Really makes my life easier. Maybe a promotion is in order. Good news. I got a new title. And a raise . Management couldnt make that happen. [ male announcer ] introducing fedex one rate. Simple, flat rate shipping with the reliability of fedex. [ male announcer ] this is the story of the little room over the pizza place at 315 chestnut street. The modest first floor bedroom in tallinn, estonia and the dusty basement at 1406 35th street. It is the story of the old dining room table at 25th and hoffman avenue. The southbound bus barreling down i95. And the second floor above the strip mall at roble and el camino. This magic moment it is the story of where every great idea begins. So different and so new where those with endless vision and an equal amount of audaciousness believed they had the power to do more. Time and time again. And then, it happened at dell, were honored to be part of some of the worlds great stories. Stories that began much the same way ours did. In a little dorm room 2713. This magic moment this is sort of a perfect combination. We see Network Security products coming from fire eye, end point and service components. The attacks people are suffering are like being sucker punched from cyberspace. You need the expertise behind those products to really respond to the complex attacks were dealing with. That was earlier today on squawk box. We heard from the two men behind the deal of the day fireeye or is it fireeye. Paying 1 billion to buy the Security Firm best known for outdoing chinese hackers. To me the big picture of fireeye is that m a is gathering a little bit of momentum and that could be another plus for stocks this year. I thank you both for making it in today. And all of you at home stay warm. Well see you back here on monday. Right now its time for squawk on the street. A frozen friday on wall street as the northeast gets hit with a double whammy. The first major winter storm of 2014 and bitter cold temperatures. As a result, thousands of flights cancelled, snow covered roads, School Closings throughout the region. Welcome to squawk on the street. Im david faber with jim cramer live from the new york stock exchange. Carl quintanilla has the day off. Lets get a look at the futures