Cyber monday sales were. U. S. Markets said to keep chugging higher as russia warns of a possible slide into recession. First up, apple in focus after the stock fell more than 3 yesterday. Raising their price targets on apple. One says this could be the top of the iphone growth cycle. They are relatively cautious here. We have blown through some targets. Kaiu has a sector perform. That is a guy i frankly dont listen to. I listen to people who liked it and are calling tops because a guy who has fought it doesnt have as much credibility. Im looking at the canacord note. Expecting the 200 million iphones, the merrill note. Pacific crest wants to trade apple. I believe trading apple is a suckers game. They were skeptical going into the launch of the 6. If they didnt have something mindblowing, he probably would down grade them. Didnt do it till now and missed a run. Ive got to tell you, there is talk of multiple praction. The multiple here is 14 times earnings. Ive got stocks selling at 1 times earnings that would wish they had the growth, would wish they had the dividend, wish they had the balance sheet, wish they had the new products. Tim cook has done a remarkable job. People cannot believe a stock can be this size. I remember when merck became a 20 billion company and people laughed. Thats inconceivable they could have a cholesterol drug doing 4 million sales. Turned out to be the largest drug in history. There are people who are skeptical i get that. When a stock hits expensive, i get skeptical. What about the argument these multiples now has been historically a ceiling for apple . The problem is there are various times when apple has one or two new products. Its rare they have big refresh, new products and something that could dazzle like the watch. I am looking at a world where the competitors, whether it be hewlettpackard, oracle, sales force. Com, whatever, these are companies and those are very diverse companies. They are valued roughly three times what apples valued at. Oracle Slower Growth is valued similar. It has to do with the way you look at companies and decide what theyre worth versus the s p. What they are worth versus technology. Most of the sox index are all more valuable right now in terms of a multiple basis than the Number One Company in the world. Im not buying it. I do like the merrill note that talks about the size of this iphone 6. When we look at the amount of whats being bought this year and we talk about the National Retail federation, i dont like their numbers, they dont include apple. I dont know how they are trying to figure out what apple is doing. Apple is a gdp factor. You mentioned the merrill note. They raised their iphone shipments to 200 million to 195. They mention the watch which they say could surprise on the up side 10 say theyll buy one. Of those 1 3 say theyll spend 500 or more. Right. The watch we first saw reminds me of a canal street watch versus say that bright one in the ad, the airplane ad . That guy does well at the conclusion of that ad. I think the new apple watch that im hearing about is a dazzler. This is going to be a watch you are going to say i want it for valentines day or my birthday. Its a giftgiving watch. Apple needs that. I asked for an iphone 6 from people. I got pushed back. How about an iphone 5. No. When you have a holiday present you ask for a 6 not a 5. The watch may be apples tiffany gift. Why arent you saying dont get greedy . Ring the register . 50 . Thats easy to say. Youre absolutely right. A lot of times ive said, im done. Its because i felt the valuation was really stretched. I didnt want to pay a market multiple for a stock that is not a market multiple. It is so easy. Ive seen it done at dow 12,000, 13,000, a lot of people say, im out of here. Im not out of here. Am i less comfortable at 715 . Yesterday we had a flash crash in apple. It was almost as if the machines went nuts. It was a transformer terminator moment. The stock recovered. The notes are good. Maybe it needs to stall out a little bit. Thats okay. Until we see the actual watch. We dont want that canal street they look good on the surface. You know that 10 watch . Now i think when they have the real watch, its going to blow us away. Cyber monday is in the books. Adobe says total online sales rose 16 from a year ago. Ibm digital analytics says sales up 8. 7 . Retailer says mobile accounted for 70 of its traffic between thanksgiving and cyber monday. 1. 5 billion hits on walmart. Com. Walmart ecommerce was here yesterday on squawk on the street. We are thinking as the Holiday Season as part of that. This is the big season for us. We are counting on shoppers continuing to shop through the Holiday Season. Cyber monday is a big day. More deals coming for the rest of cyber week. Those ibm numbers are interesting. Numbers are good, spending was flat per order. Was still 131 or so. I use the numbers from ecom. This is sector and sovereign research. Talks about black friday reads are limited utility. Literally, this is a piecess con which says like a College Thesis which says what you thought about National Federation of retailers is just wrong. Its not valuable. Youve got to use the new methods of valuation. I think online sales were outrageously good. Skechers on last night. They had a 9 million singles day in china. Take a look what skechers told jim. We have a huge Online Business with everybody we sell to. In the aggregate our Online Business we did 9 million in one day in china online last week, two weeks ago when they had that singles day. We did 9. 2 in one day online, which is incredible. Our Online Business is enormous. They have big numbers. The journal has a piece today about the notion that its not so profitable to do Online Business, but it did have a couple of companies doing well. Skechers makes a fortune online. Its fantastic from them to you business. They have show rooms, the stores. Theres a lot of wholesalers that make the nice profit on it. They are saying cyber this weekend that friday was gigantic. That stock is very cheap. David berman interviewed by david faber talked about it being cheap. This is famous in a bull market for foot wear encompassing nike and armor and dsw. I would not bet against dsw here. The times has a nice piece on amazons ambitions selling music and books almost free to one day beat your pipeline for everything from milk to cookies to food to you name it. I love that piece. You have the journalists. I read the first paragraph. Amazon is losing it. Second paragraph said no, no, they have chosen to lose it. I dont care for the stock here because this cannibalization is something people arent ready for. That is something amazon is in control of your life in everything you do will be amazon. Very clever depiction of how amazon could take over the world. Then fedex today adding it to the us1 list saying fuel prices coming down. Their fuel surcharge will go away with a lag. Not to mention two rate increases in the same calendar year. The stock when they went from 89 they reannounced a bad number. Then went to 84. The second one went back to 89. Then its been a Straight Line since. Overnight packaging which we felt was a real worry, turns out people werent wealthy enough to have that. The piece has a lot of gravitas. This cyber weekend was off the chart. You think the trading down in terms of premium shipping, that chapter ended . Yeah. The great reception produced a lot of people with a mindset like our parents or grandparents which was like weve got to return the bottles and cans. Nickels and dimes. Now what people are doing is being extravagant again. That is fedexs big profit margin. I like that stock. I liked it for a long time. Dont put me in the john johnnycomelately Merrill Lynch camp. People are raising the price target. You cant play amazon because we dont know what they are doing. Now suddenly we say, wait a second. Our way to play amazon is fedex and its going higher. You prefer that . I prefer my Charitable Trust buying ups because its not as bad as people think. Ups missed last years christmas so badly. They did preannounce already. It was horrible. Ups is such a great company. I would not bet on them to get it wrong again. All right. Thats good. That is a nice order of preferences there. There is fedex versus ups. Falling oil prices resulting in bad news for russia. The rword is popping up. Also ahead, former best buy ceo Brad Anderson. Take one more look at the premarket. Not looking too bad on a tuesday. More squawk on the street. Oil prices back on the decline after rebounding after fiveyear lows. Russia warns it expects its country to fall into recession next year due to Falling Oil Prices and sanctions with ukraine. His popularity is still at 85. Theyve got the i dont care attitude. Last night i talked about what are the things that are going to go wrong. We did have in 1998 our banks much more linked with russia. Its possible that they could go down, so to speak. There is a general consensus this is a rogue country. Its not something you want to have more fire power. Anything against putin is positive for the west. When i read that i think, okay, you know what . Good luck to you, partner. What do you make of the number of hedge funds . Also the notion a lot of financial obligations are backed by oil as collateral . I think you are seeing the stocks down. If you look at the size of them. Exxon can buy all the refinancing tomorrow. What you have right now, you have the big guys have this fantastic balance sheet. I had Boone Pickens on mad money. They need Production Growth and can get it in america. They can refinance the high debt. Im not as concerned about what can happen with oil. When it comes to hedge funds, i said last night, listen, first 10,000 or first whatever percentage, index funds. Maybe you can then find the apples. People who want to buy stocks have to learn one of the best ways to buy them, look at a multiple and figure out what stocks are cheaper. This is an index fund year. A lot of companies are going to find it hard to justify their existence. Dudley on the tape yesterday argued what happened to oil is a net positive for us. Those who want to color it in a negative scheme probably are looking to the wrong place. When you go over the supply figure, this is one of those its a rare moment where the statistics for when you get the statistics, i was looking at november 24th great count and supply numbers i get from propriety surfaces. The amount of oil we are pumping versus three months ago is so step function up that you can understand why the worlds being flooded with oil. Being flooded with our gasoline. This is not a Saudi Arabian story. I think they want to stop that. We are pumping like mad. Our rig count is up dramatically from last year. Some of these companies are 4 and 5, but i did have magnum hunter on and they moved aggressively into natural gas out of oil. They sold 750 million of Oil Properties in the balkan that the ceo was saying, thats now worth about 250 million. Magnum hunter has a lot of financial wear with all. They do have preferred yielding 10 and 11. I do think that there are a lot of companies that wont make it. The size of the companies are dwarfed. It reminds me of in march of this year we had a dramatic click decline in the cloud names. People started comparing it to 2000. If you added up the cloud names worth less than cisco, lets keep perspective. That is a nice parallel. We have been reading reports of a mega glut for months. Howard hamm said im taking my hedges off. Hes a billionaire. If hes unhappy, its his own darn fault. I like harold. Another says its going to 60s. I want to know what he says trying to get it back on. Brian sullivan, excellent reporting. Our wells, we have a lot of wells at 40. When you can hedge out 75. Any time i can do that trade, ill do it. The only companies that are going to stop drilling are out money. The other guys will keep drilling. They want to maintain their market share. Its not just the saudis. Things are good. Well get cramers mad dash as we count down to the opening bell. My baby drove up in a brand new cadillac my baby drove up in a brand new cadillac look here, daddy, im never coming back discover the new spirit of cadillac and the best offers of the season. Lease this 2015 standard collection cts for around 439 a month. Im all about free travel, babe. Thats what i do. [ female announcer ] fortunately, theres an easier way, with creditcards. Com. Compare hundreds of cards from every major bank and find the one thats right for you. Creditcards. Com. Its simple. And find the one thats right for you. Once there was a girl who even in her laundry room. With downy unstopables for longlasting scent. And infusions for softness. She created her own mix, match, magic. Downy, wash in the wow. Lets get cramers mad dash. This is a brilliant deal driven by t. J. Rodgers, the incredibly smart ceo of cypress. The man has been putting out fantastic new products that havent revealed it cost him a lot of money. They merged with spansion. If you go to their website has batteryfree technology. They do micro controllers. This is a trade driven by the internet of all things. Thats what this is about. It reminds me of rf micro and triquent. Buy cypress. T. J. Rogers creating tremendous value. I love him. I love the stock. 15 target. Fantastic merger. They are going to take out 100 million in costs. The guy is a brilliant guy. This is a brilliant transaction. Good size deal. Meg terrell was talking about biogen today. Yesterday biogen is telling people to buy it. The competitive ms drug from novartis did not show up good versus biogens ms. Even more important, biogen says they may have an alzheimers situation. Historically been very difficult to develop something that stops the plaque of alzheimers. They have early stage reading that indicates they are not the only one. There is a deal by Japanese Company for avnr that has a blockbuster potential for alzheimers. Biogen is a fabulous stock. Anybody who had them on, knows them. Loves these guys. Meg is close to biogen because of the ice bucket challenge. Is this a highly specific story or the gileads and celgenes going to get chased . Regeneron is going to 450 in the cholesterol formation. And asthma formation. Celgene is a very inexpensive stock. They put together a franchise that is the idol of all big pharma, small farmer and janet yellen who famously said to sell. I am kidding, but that was the bottom in the group. Janet yellen, never talk about stocks again. You will never let her live that down. Im crazy about her. I didnt mean it like that. I think she is doing an incredible job. She called the bottom. Her buy the sell call in biotech may be as bad a call as i have ever seen in 2 my lifetime. Well get the opening bell in about four minutes. You know how fast you were going . About 55. Where you headed at such an appropriate speed . Across the country to enhance the nations most reliable 4g lte network. Hows it working for ya . Better than ever. Howd you do it . Added cell sites. Increased capacity. And your point is. So you can download music, games, and directions for the road when you need them. Whos this guy . Oh thats charlie. You ever put pepper spray on your burrito . I like it spicy but not like uggggh spicy. He always like this . You have no idea. At t. The nations most reliable 4g lte network. You are watching cnbc squawk on the street. Opening bell in less than a minute. Auto sales on the way. By the way, first day of the month, weve not had a positive first day of the month across the board since july. Remember when that was the norm . Yeah. I think we had a very powerful markup. Almost as if someone had fiscal year that ended in november and moved stocks up on that light friday. Then just came if and we had that, like i said, the flash crash which i found to be very phony. You know what . Friday was phony, too. Phony minus phony equals nothing. Unbelievably, the dow still has not had two days in a row losing since october 16th. That is incredible. Theres a look at the s p at the top of your screen. The opening bell down here at the big board, brazilian ironore nickel producer. My Charitable Trust stock owns that. Worst stock i ever owned. If i bought jerry vail futures, i would have done better. Ldrh doing the honors. Phil lebeau has auto sales. More impressive numbers. This time its from General Motors november sales increase of 6. 5 . That is well above the edmunds. Com estimates of 0. 6 . General motors says it expects the Industry Sales pace for the month of november to come in at 17. 1 million vehicles. Earlier this morning chrysler said it expects the Industry Sales pace to come in at 17. 5 million vehicles. Its clear at this point that we are looking at november sales likely to be the strongest since november 2003. Back to you. Unbelievable. Its gas guzzlers. People are buying the ones with gasoline where it is, they are going back buying those cars and those light trucks that do eat a lot of gasoline because gasoline is cheaper. This is happening instantly. I know this from marathon pete. They are one of the largest gasoline station companies. This is the profitable stock. These stocks are way too cheap. Ford does not have the cars. Mark fields has been dealt a hand there gm is in my Charitable Trust. Maybe gm can do better. I didnt mean to make fun of the vale guys. Im hoping they will hold five. Im sure they forgive you for that. Ford down 1. 8, estimate down 1. 4. People were talking peak autos a few months ago. They were so surprisingly wrong i should dig up who said that just to throw mud to end the year. Heres mud in your eye, clowns. You dont think its because of the elongation of loan cycles . The problem of gm and ford has been europe and china. Numbers in the United States have been terrific. The reason these stocks have been bad has nothing to do with the United States. We think of them as u. S. Companies. They are so germany had minus 2 sales for the last month. Youve got to have europe. People say europes got to come back. Thats why you buy ford and gm. These are Big International companies. These are not local companies, for heavens sake. Your biogen will be the best s p gainer. Celgene not far behind. Celgene is so big. He is so not a promoter. He has a terrific job, anticancer drug for some of the hard cancers. I am mostly excited about an arthritis drug. When i saw bob in town because hes from summit, i said could get in that test my back hurts. He said no, this is major stuff. I believe if anybody is going to solve arthritis in our lifetime it is celgene. Anyone who thinks celgene is a onetrick pony has been sorely mistaken. This is a threetrick thoroughbred. Customers want something for arthritis down the road. Think about the baby boomers. This is it. Common cold, arthritis, pneumonia. Phil lebeau, you want to talk us through the ford numbers really quick . Thing to keep in mind with ford. Ford is down . Keep in mind ford brought down fseries production for about six weeks in the fall as they are transitioning to the new aluminum fseries. Those are just coming off the assembly line. There is less supply of the fseries pickup out in the show room. Thats a huge factor. The fseries is the bestselling vehicle in the country. Thats something to keep in mind when you look at ford numbers. Most analysts, youve got to look at september through november into december and take it with a grain of salt. That transition means muddy numbers. Great analysis. I know that from alcoa. At the same time, this is the moment to have trucks in. This gasoline break is starting to sink into people. Goldman is the best performing dow component out of itt. Did you see this hold to buy . Its interesting. They dont like a lot of neutral to sell. These are companies that have this ancillary goldman is good. There was a big upgrade at the banks yesterday totally ignored. It is driving me nuts. Apples multiple is under 12. Think about that. People who want to trade apple. That is a commission generator. Buy sell. Tim cook is not a believer in buy sell, bye sell. You were mentioning marathon pete. That is the sixth biggest gainer. That is a remarkable company. Theyve been the most aquisitive. I filled up this weekend. I bought a big pack of twizzlers, not the smaller pack. Someone is buying monster drinks with the extra money. Thats very good for you, right . Rbc cut it from a top pick. Cocacola is going to buy monster. They are going to buy Keurig Green Mountain and monster. Im saying they should. Monster is not like drinking beat juice, coldpressed beat jaws is probably better than monster. Have you had one of those fivehour things . I never have. You can drive for five hours without stopping. Amazing. Priceline is down a percent. Fbr cuts it to market perform. Thats the trevago guy. Rcl is going to go to the s p. Bms, great container company. They are having a great quarter. Nclh reason states with an overweight. There was another call yesterday. People are trying to bring in the ebola short on this. This is a free fire zone. What Companies Use more oil than anybody . There was a note yesterday from carnival cruise. Carnival is interesting, too. The guys from royal who come on a lot are great operators. Jpm initiating microsoft with a buy. Oracle underweight . Talking about uncertainty in consumption preferences. I think if you look, this is a good example what happened last week. Microsoft was down friday. That was not marked up. If they own a lot of these stocks they can show up a 1 gain. That does happen in the business, unfortunately. Microsoft notice well timed given the stock didnt run friday. It was up yesterday. Some might say wait a second. They knew. No one liked it. They liked him. I am an amy hood fan, the cfo. She is fabulous. She has been a source of stability over there. Yes. When i met her she was like, she had baby food on her jacket. The woman does not take a break. She is working 27 hours. She is my cfo of the year. She knows i feel that way. Im glad her mom likes the show. You are looking at b of a note lowering energy . That is the exact opposite call Morgan Stanley had yesterday. The numbers have not been cut enough for the Oil Companies yet. Here they are talking about s p should shave 3 to 4 off s p the group. The group is challenged here. They are set up for higher. A lot of companies have hedges. A guy referred to gary edwards with, hedge for 2015. It shouldnt just roll over. A lot of these little guys, goodrich. The gdp is doing boater. Lets get to bob pisani. Dow up 40 points. Defensive nature here. Health care, consumer staples. Gold on the down side here. Lets talk about china. We had a huge jump in china up over 3 on the shanghai index. Look at that. Second half of the year has taken off. Frankly, its a lot of speculation on stimulus measures. The economy is not that much better. I want to point out the enormous differences. This is the year of mainland china. Look at this. Shanghai index up 31 this year. Hang seng up 1. 5 . Shanghai which has been left for dead for years has finally erupted. This is a good time to point out be very careful how you invest in china. Let me show you how the main etfs perform. They are all over the map here. The fxi is 30 big cap stocks up 3 . China ashr is up 19 . The difference is that large cap etf invests in big cap stocks that trade outside china, hong kong or adrs. Ashr actually invest in shares traded only in mainland china. Those restricted ones have taken off. Its been very hard to access this etf. Ashr can. This highlights the real difference is. Good news is people can now start accessing these ashrs directly if you have access to a hong kong license, you can buy into these ashrs. They will start opening up to the world now. We wont have odd price disparities in the years to come. Let me move on and talk about oil services. Opinions are all over the map today. We had a downgrade over credit suisse. Thanks very much. There is the oil service index. What is interesting to me forgetting people trying to pick bottoms. Citigroup says if west texas moves into the mid 50s, we have people talking about the big integrated guys. Those are the names they talk about trying to find bottoms. This is the first time im starting to see people argue with it. At least we have something to talk about at this point. Let me mention apple since you mentioned it. I spent a lot of time on that apple trade and what happened there. 50 somebody dumped 6. 5 million apple shares on the market. Somebody dumped 13 of apples total daily volume in about 50 seconds. That is not a flash crash. If you dump 13 of a Company Shares on the market that trades daily in 50 seconds, that stock is going to drop. It did about 4. 5 . The question is why did somebody do that . Either somebody deliberately wanted to make a statement or made a stupid trade. Ours had an algorithm. You could have done it in a simple professional way. That leads me to believe somebody wanted to make a statement or was a simple mistake and they executed the trade too fast. As for motivations . I dont know. Pacific crest was talking about iphone growth may be slowing down. November sales were fabulous. There are a lot of opinions all over the place about why it happened. Im quite sure somebody was out there aggressively for short periods of time. You get somebody dump 13 of the shares, stock will drop quickly. Dow is up about 40 points. Defensive. Back to you. People talking a lot about 23 billion market cap. Its a twitter right there. That was a great analysis by bob. There was stupid trading yesterday. Brokers dont position stocks. You cant say ive got 5 million. If you want to hurt yourself you do something stupid like that. There is an art to trading. That guy ought to get a paintbynumbers set. Celgene up 2. 5 . Thats my kind of stock. Lets get to rick santelli. Those of you who watch and monitor the spread between our ten year and bund, you did very well the last couple of days because that spread narrowed and it narrowed at a time when bund yields were moving higher. Look at a twoday chart of the spread. It moved from 145 up to 1552. Eight basis points. The 14year high is 1. 57. Its at 1. 53 as you see on the longterm chart. That did move rates. If you assume a growth factor of 150 basis points, it leads you in the right direction. Look at a one day of 10 year. We are up a dozen basis points from an intraday basis to yesterdays low yield at 2. 50 where we are currently trading at 2. 27 . Thats a good move. That was the 15th, that wild session. I called it the capitulation trade. Lets switch gears to Foreign Exchange. As i look at the board every single currency is down against the greenback. You can figure out pretty much dollar index having a good day. Lets pick the dollar yen. Intrai did chart getting ever closer to what traders on this floor have been telling me since the spring. 1. 20 is where the markets will test. Look at a twoday chart of the euro versus the dollar. Thursday ecb meeting getting closer. Bottom coming out from underneath the euro currency. Back to you. Thank you so much. Oil threatening to crack 68 on the downside. Jackie deangelis at the nymex. Judge, no surprise we are seeing selling pressure this morning after that 4 plus pop we saw yesterday. You have a stronger dollar putting pressure on oil prices. Weve been discussing is this a bottom . A lot of people saying potentially in the 50s we pay see a bottom. Traders in the pits are saying this could get worse from here. We could see this volatility over the coming months or so. Picture for oil is bleak right now. You are talking about consumers. Jim was mentioning this for a lot of companies that rely on consumers. Average gas price 2. 76. They are down 50 cents from a year ago. 42 states under 3. In florida, you are 68 cents lower than a year ago. The Services Companies and Oil Producers may struggle with lower prices, but a lot of companies are going to see an upside of their bottom line because of these oil prices. If they are shipping, if they are relying on consumers to hit the road and come out to them. They will be highlighting the names throughout the day. Stay tuned for that. There is nothing wrong with a little shameless selfpromotion. Im looking forward to c. Boone pickens on the show. Shameless promoter is my middle name. Thank you, jackie. We worked together at the beginning of mad money. Always a favorite of mine. Thank you, jackie. Worries best buys holiday discounts may hurt its profits. Well talk to the former ceo Brad Anderson. Act i. Scene 3. Open port twentytwoohoneseven on the firewall for customer db access. Install version twopointthree of db connector and ensure verbose flag is set in case of problems. clapping sound isnt the cloud supposed to make business easier . Get the one that can connect to the systems that you already have. Today theres a new way to work. And its made with ibm. Dad hes our broker. He helps looks after all our money. Kid do you pay him . Dad of course. Kid how much . Dad i dont know exactly. Kid what if youre not happy . Does he have to pay you back . Dad nope. Kid why not . Dad it doesnt work that way. Kid why not . Vo are you asking enough questions about the way your wealth is managed . Wealth management at Charles Schwab [time warp explosion] yes where have you been . The future and it looks bright. But we need to upgrade our Network Power protection. No problem were working on a smart ups system from apc and cdw. Gonna keep our Network Powered and highly available. Did you just alter the spacetime continuum . We gotta go back. We cant. Its broke. Uh oh. Three days to go until the big jobs numbers. Tweet us your predictions at squawk squeak, hash tag nail the number. A lucky winner will receive the cnbc 25 commemorative book autographed by the squawk on the street gang. Youve done your share. I have. That makes it more valuable. Consensus around 230. Hiring has been strong. I think its going to be 250,000. I like to take it over. Retail hiring, amazon hiring, ups hiring. When you get together with kids, its interesting to hear what are you doing over vacation . Working for ups. They put a lot of people to work. We dont salute them enough. We worry about whether it goes up more than fedex but some of these companies are providing younger people great jobs. Evidence that Small Business is joining the expansion. I find the optimism getting close to new highs. People have to recognize Small Business does create the jobs. Thank you, larry kudlow teaching me how much they are important. Lets salute the fact companies are putting people to work. Best of luck to you. When we come back, well get stop trading with jim. Dow up almost 30 points. My baby drove up in a brand new cadillac. My baby drove up in a brand new cadillac. Look here, daddy, im never coming back. Discover the new spirit of cadillac and the best offers of the season. Lease this 2015 standard collection ats for around 329 a month. Were for an opens you internet for all. Sing. Were for creating more innovation and competition. Were for Net Neutrality protection. Now, heres some news you may find even more surprising. Were comcast. The only isp legally bound by full Net Neutrality rules. Time for cramer and stop trading. Which i could say its time to buy rig. Cut in dividend. Is stryker going to do a deal . Are they the next . Theres tremendous consolidation in business. Its too much conviction at a 52week high for me to think dont buy stryker. I say buy stryker. Thats one of the big calls today. We know whats on mad tonight . We have Boone Pickens and Deckers BrandsAngel Martinez and kevin miles. Look at the zoes, a madetoorder mediterranean. Its coming your way. I think that this is the next great concept. They dont do as much per unit as i would like to see. I had fiesta group on yesterday. I want to own pollo tropicale. See you at mad money tonight at 6 00 eastern. Brad anderson will join us the next hour of the program. A new target call on apple. Is ben lawsky about to quit . Are dizziness, sleepiness, weight gain and swelling of hands, legs and feet. Dont drink alcohol while taking lyrica. Dont drive or use machinery until you know how lyrica affects you. Those who have had a drug or alcohol problem may be more likely to misuse lyrica. [ karen ] having less pain, that means everything to me. [ male announcer ] ask your doctor about lyrica today. Welcome back. Breaking news, october Construction Spending. Up. It would have been close. We havent had three negative numbers in a row since december through february 2011. We avoided it this time. The preceding negative was made much smaller. Good news from an october construction perspective. Keep in mind, Interest Rates moved up markedly from intraday levels yesterday to today. Well continue to monitor not only the upcoming ecb meeting, but employment numbers wednesday and friday. Back to you. U. S. Stocks are in rebound mode today. Dow is up 41 points. Oil back in decline. Lets talk about it. Jerry castellini with castle mark management, Michelle Meyer join us, senior u. S. Economist with bank of america, Merrill Lynch global research. This followed what we have seen. Strong u. S. Data, manufacturing better. How does this set us up for the big jobs report friday . This was a good report. It was better than expected. We had an upward revision. Its going to boost gdp estimates for the fourth quarter. Prior to this report we had been tracking. We were in need of better data to boost this number. It follows 3. 9 increase in q3. I do feel positive about the jobs report on friday. We are forecasting 240,000 per jobs. We think the Unemployment Rate will head down to 5. 7 . This has been a consistent string of healthy numbers for the labor market. We are averaging 235,000 on sixmonth moving average for jobs. I think thats consistent with a 3 or so economy. Is all of that good news michelle was just talking about on the economy, already priced in . Not to mention the fact now the topic du jour is oil and how that will be beneficial. Whether its new york fed president dudley, Christine Lagarde saying that will boost our economy. You look how powerful the u. S. Economic cycle has now reached a level that generally provides big upside surprises on the earnings front. Weve been banging around here 5 to 10 Earnings Growth. Dont be surprised if on this economic strength alone you see a much stronger earnings outlook for 2015. The oil side is another boon. That probably hasnt been discounted yet in the market. We have good probably 5 to 10 Earnings Growth coming from lower costs throughout the economy at every level from gasoline to manufacturing costs. This could be just the beginning of something that is very, very powerful. Let me pick up what central bankers are saying. We might have learned something very important over the last 24 hours. The assumption from many had been because the price of oil had come down and was disinflationary, actually the fed would stay lower for longer. If you look at what advice chairman Stanley Fisher said yesterday and to many people, he said he is not very worried. The lower inflation well get from the lower price of oil is going to be temporary. The phenomenon is making everybody better off. We can jump to a conclusion almost that the fed is going to look past potentially a dip in inflation for the longer term due to oil. As dudley suggested yesterday, may still raise rates in the middle of next year. What do you think . I think that is a fair assessment. Remember the fed is targeting core inflation for good reasons. It takes out the volatile food and energy components. Swings in Energy Prices are things the fed cant control. If you think about the drop in oil prices, which has been pretty significant, it serves as a tax cut or tax rebate. Its reporting consumer spending. You get some net stimulus to the economy. Yes, it pulls down headline inflation. It could impact Inflation Expectations which the fed will take notice of. Broadly speaking, what the fed has to focus on is where is the underlying Inflationary Pressure . Thats what is why the jobs numbers are so important. That is going to reveal Wage Inflation and tell us about the momentum in terms of hiring and how quickly the Unemployment Rate continues to drop. Thats what the fed is focused on. Or lack of Wage Inflation which is the case. Yes. Jerry, you say the oil boon isnt discounted in the stock market yet and you are looking for potential upside in growth. Where specifically would you want to buy on that thesis that Lower Oil Prices are going to help out Certain Companies . Sure. Obvious place you want to start with are up side surprise earnings. We take a big Capital Spending cycle just Getting Started so the Technology Companies almost across the board are attractive here. They are at reasonably good valuations. We look at industrial companies, as well. Then the obvious winners are the Consumer Discretionary retailers. Those types of companies. The big surprise and one area you have to focus on now is the fact the oil stocks themselves priced in 50 to 60 Going Forward for years and years. Thats the space you probably want to have the greatest focus on right now. Those stocks are the only stocks down appreciably for the year. Over the next 6 to 12 weeks, youll see a bounce back in oil and move back to 70, 80 range that will make stocks move. Weve got lots of variables now. Thank you for joining us. Brent crude 71 a barrel. 59 points on the dow. Lets get a market flash with don chou. Watching shares of legg mason, nelson peltz resigned from the board. He is chief executive and founding partner. It owns about 11. 5 of legg mason shares. Down by about 1. 5 . Founding partner ed gardner has been given a sink on bank of new york mellons board. Trian owns a stake in that bank. Automakers out with Sales Numbers today. Pretty much crushing it. Chrysler up 20 in november. Gm and ford with results, as well. Phil has all that in chicago. We just got numbers in nissan. A decline of 3. 1 last month better than most were expecting. Most were expecting a decline of 8. 5 . This continues the trend. With the exception of ford seeing better than expected numbers last week. Take a look at the big three. Chrysler stands out here. Increase of 20. 1 . Street was expecting an increase of 15 . Gm much better than expected. Ford down 1. 8 . Just a shade below what people were expecting there. What stood out about last month . The sales pace was going to be driven by a big black friday. Sales pace for the month now being expected to come in over 17 million both gm and chrysler casting as high as 17. 5 billion for a sales pace. That would make it the strongest november since 2003 and potentially back to 2001. A huge black friday was driving business last month. In particular, when you look at jeep, it is on a roll. November sales for the jeep brand up 27 . Cherokee sales up 67 . It is the 14th straight month weve seen a sales gain. Take a look at shares of fcau, fiat chrysler. Trading at an alltime high up almost 3 on the day. I want to give you one last stat here. Go back five years ago, november of 09 and compare it with november 2014 for chrysler. Sales up 2. 5 times greater. 169 gain when you look at november to november five years ago to today, a stellar month for chrysler. Back to you. Thank you very much. For retailers, black friday and cyber monday are two of the most important shopping days of the year. This was best buys website black friday. It crashed twice. Then comes news spending for the whole weekend was down. Can best buy get back on track the rest of the Holiday Shopping season . The former ceo of breast buy Brad Anderson will join us next. Introducing. A pm pain reliever that dares to work all the way until. The am. New aleve pm the only one to combine a safe sleep aid plus the 12 hour strength of aleve. The holidays can be an especially difficult time. Everythings different now. Sometimes i feel all alone. Christmas used to be my favorite. I just dont expect anything. What if santa cant find me . To help, sleep train is holding a secret santa toy drive. Bring your gift to any sleep train, and help keep the spirit of the holidays alive. Not everyone can be a foster parent, but anyone can help a foster child. Getting headlines this morning from reuters that Speaker Boehner is going to propose to House Republicans shortterm funding that would keep the government open until september. Whether it was that or Construction Spending at the top of the hour, dow got a nice pop here. Now up almost 60 points prior to that. In the meantime, Cyber Monday Deals spurred an Online Shopping bonanza. 2. 65 billion, a 16 increase year over year from the top 25 retailers seeing a 25 gain. The most high profile hit best buy black friday. That retailers website crashed twice leaving Online Shoppers unable to purchase and browse. Joining us this morning to talk about that is former best buy ceo and current board member Brad Anderson, also a member of the job creators network. Great to have you back. Good morning. Thanks. Great to be here. This is not easy stuff to do. Is this excusable even by a long shot . I dont know when i was ceo it was one of the things i would worry most about in terms of the amount of pressure that gets put on every system in a company on black friday, particularly for best buy where a huge part of the business is a lot of pressure. Its the kind of thing i always worried about. Thankfully right now i dont know what the cause was. I assume it was the amount of pressure. Im sure well do a big post mortem on them at the next board meeting. Record numbers of traffic, spike in global traffic. How much damage could it have done and lost sales . Its significant. Its not a lasting damage. Its a damage that occurs during the course of that day. What about this idea of what weve seen over this past holiday . We saw it on thanksgiving with some of the numbers. Now cyber monday, the idea those days themselves are less important and discounts are spread across weeks november and december. I think its more margins getting crushed over a longer period of time. It does stimulate a lot of attention and activity. Margins are under pressure. The more its spread out with still having them on the strength that exists on that black friday does put pressure on margins. Its something happening gradually. Retailers have plenty of time to adjust and get used to it. How do you and the founder Richard Schultz been able to take it private with private equity . Would you have done something more fundamental with the business and changed things differently . I think up to this point, id like to say we would have done what Management Team has done. They cut an enormous amount of from structure and expense out so the company can grow its profitability and be competitive. You see that in the Comp Store Sales gains. What i would like to claim is we would have done much the same kind of thing. Longterm, best buy has to become more a complete Service Organization for its customers. It has to increase its competitive advantage. That is what the team wants to do. I dont think there is anything fundamentally different we would have done. You have to anticipate what the customer wants and be there on the cutting edge of customer service. What does that mean in practice . What do you do this season that you didnt do last season . Consumer electronics presence all sorts of advantages, but complex problems. Its because its always changing. You take what the new iphone 6 can do. You have to adapt what all the rest of the Systems People use to that. Best buy has an opportunity to get out in front of the customer, help the customer through that experience so that its easier for customers to have and become more compelling. Speaking of the tough business of consumer electronics. Radioshack down 70 yeartodate. Got headlines about their turnaround plan. You see consumer electronics, if you reposition something you can be in a lot of trouble to being very successful fast. If they can occupy a meaningful niche for the customer, i wouldnt write them off. Its hard when youve got as much infrastructure expense to figure out how to use. Do you buy these numbers at all . Yeah. I think they are usually pretty good. Really . That would not portend a good season. People are trying to find conflicting evidence. When youre trying to put this together, nrf numbers historically have been pretty good, but when you see patternships like we saw last year at christmas which turned into a bad season for a lot of retailers, it makes it harder to forecast. If you look at the last quarter for a lot of big retailers, weve seen a Strong Quarter coming in p. When you look at consumer electronics, best buy has a reason to be bullish. Its got a hot products cycle. The iphone 6, 4k television sets. There are exciting products in that space. On a macronumber, you have customers constrained in terms of discretionary income. Thats the pressure that is going against an otherwise more enthusiastic consumer. Its hard to call. Quickly, do you buy this idea alibaba is getting unfair tax treatment against brick and Mortar Stores that congress should do something about it . I thoroughly agree with that. It makes no sense to have somebody, because they operate in your local market, have a 5 or 10 disadvantage compared to an interNational Retailer or retailers that dont operate locally. Its a structural disadvantage that makes no sense to us as a society. Its harmful to a job creation environment. Its always good to see you. Please come back. Thank you so much. Sticking with the Holiday Shopping theme, we are looking at stocks that have been winners during the season. Dom chu back with more. Investors trying to figure out which stocks to put on their shopping list. We asked for a look at winning trades in the Retail Sector to find retail stock winners. We used a universe of components of the xrt. Think about this as our shopping mall. Out of 100 stocks we looked at Price Performance over the last decade between thanksgiving and 20 trading days after. That is the time between it and christmas. We isolated those stocks that were positive. 810 years for the Holiday Season and only 12 stocks passed all those criteria. The big winners are not retailers per se but Auto Companies here. People arent going to malls or cyber shopping. They are going to car dealers. Look at this. Phil lebeau put us in the spirit of these auto Sales Numbers. The best performing Holiday Season retail stock over the last ten years is charlotte, North Carolina based sonic automotive. This is a 1. 3 billion company up an average 10 for the Holiday Season during the last 10 Holiday Seasons and positive 90 of the time. Lithia motors has been positive 810 years. Autozone gaining 6 on average up 90 of the time. Well finish off with autonation. An average of 4 80 of the time during the last 10 Holiday Seasons. Carmax which was part of our universe but did not meet our screen is up over 2 today. Its at record highs. Some investors are paying close attention to how autorelated stocks, but the auto dealers and parts retailers do during the Holiday Season. Back to you. You always see the commercials with the bows around the cars. People buy into that. Thank you. What it really takes to get that stuff you ordered online to your door on time. We track the packages journey with a behindthescenes look. Get to the terminal across town. Are all the green lights you . No. Its called grid iq. The 4 51 is leaving at 4 51. They cut the power. Itll fix itself. Powers back on. Quick thinking traffic lights and self correcting power grids make the world predictable. Thrillingly predictable. Tdd 18003452550 even on the go. Tdd 18003452550 open a schwab account, and you could earn tdd 18003452550 300 commissionfree online trades. 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In a we believe outshining the competition tomorrow quires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. Welcome back to squawk on the street. Im phil lebeau with breaking news from toyota. Reporting november sales in the u. S. Increased 3 . Better than the edmunds. Com estimate of an increase of 1. 6 . Toyota sales last month up 3 . If youre looking at all the automakers, with the exception of ford, weve seen better than expected numbers across the board. Look for a strong Monthly Sales rate when reported later this afternoon. Back to you. Thank you. Millions of packages will be shipped this Holiday Season. What does it take to get them to their destination this year on time . Morgan brennan is in berkeley, california, tracking a shipment from beginning to end. Precious cargo this. Yes, very precious cargo. Here in this Distribution Center for wine. Com, theyll ship 1 million bottles of wine this month. Thats 1 3 the companys total annual sales packed into december alone. This ecommerce is expecting an expected record peak shipping this season. 1. 3 billion are expected to be delivered. Are these Companies Ready to handle all of these shipments . Last year bad weather and a lastminute spike in Online Shopping caused 2 million packages to miss christmas. Fedex was responsible for 1 3 of those. Ups the rest. Since then both companies have invested hundreds of millions of dollars into their networks. They hired more seasonable workers. And warned too many lastminute shipments to result in higher fees or refusal to take certain orders. What does it take to get your lastminute purchases on time . Fedex which is what wine. Com uses is giving us a behind the scenes look at its express shipping service. Over the course of the next 24 hours, we are going to follow a wine. Com shipment from here in berkeley, california, via fedex overnight delivery to washington, d. C. This voyage will entail five stops in four different cities with final delivery tomorrow morning. Back here at wine. Com over the next days and weeks, this warehouse is going to handle 10 times its normal volume. That precious cargo the packaging is much more elaborate because youre talking about bottles that cant break or spoil. Whose bright idea was it to have the case of Wine Delivered to the nbc d. C. Bureau . Yes. We will be making this delivery with this case of wine tomorrow at the d. C. Bureau. The details of that package and what are inside it are to be decided. You have to tune in tomorrow. Thank you very much. Morgan brennan with the package. When we come back, crude Oil Back Near multiyear lows after a brief bounceback. If oil keeps falling, what does that mean for the rest of the economy . In the red again today after falling sharply yesterday. Some Analysts Bullish on the stock though. Thats apple. Well talk to one who raised his price target. You dont need to think about the energy that makes our lives possible. Because we do. Were exxonmobil and powering the world responsibly is our job. Because boiling an egg. Isnt as simple as just boiling an egg. Life takes energy. Energy lives here. Im just looking over the company bills. Up . Is that what we pay for internet . Yup. Dsl is about 90 bucks a month. Thats funny, for that price with comcast business, i think you get like 50 megabits. Wow thats fast. Personally, i prefer a slow internet. There is something about the sweet meditative glow of a loading website. Dont listen to the naysayer. Switch to comcast Business Today and get 50 megabits per second for 89. 95. Comcast business. Built for business. Oil prices reducing their climbing trend. Brent sliding lower. Oil prices plunge, what will the effects of consumers and the Global Economy be . Joining us is andy lipou. What point do we rebalance on the price of oil . The peak in excess supply is supposed to be in the Second Quarter next year. I think we are going to go lower here. 60 is a target for the market. As you point out, demand is going to be declining from that at the Second Quarter at the same time u. S. Production will continue to rise. With these lower prices, well continue to bring on new production in north dakota, texas and the gulf of mexico. The most widely quoted figure is 50 to 60. You have people talking about greater efficiency, technological advances. Now numbers below 50 a barrel. International Energy Agency is saying price is 42, which seems low. The fact of the matter is production cost is going down. Importantly citi said if west texas falls into the 50s buy aggressively. The argument goes these Production Companies tend to fall rapidly at the beginning of the oil price move down. Then they stabilize and of course oil will come back. This is a buying opportunity as far as they are concerned. What do you say . I think i would stay away from the oil services sector. If oil dropped to 50 a barrel, i think i would jump in on some of these mid size producers like eog resources, devon energy, noble and anadarko. Soon as oil prices pop they get an immediate benefit. They may be circumspect about reinvesting. Is where the cheapest gas, houston . Houston is close. Weve got it down to 2. 18 a gallon. If you go to a service station operated by a supermarket with an affinity card you are paying close to 2. Between texas and South Carolina is the cheapest. How likely is it 2 gas is going to be common, maybe not the norm but common in this country . I think its going to be common throughout the southeast from arkansas to South Carolina where we have cheaper gas close to the refineries. You are going to see several stations at 1. 99. Do you think that is long lasting . Part of that narrative has been people arent spending as much as they thought because they dont think these prices can stay this low for long. I dont think 1. 99 is going to be here for a widespread length of time. I do believe 65 to 70 oil is here throughout 2015. Thats lower gas prices. National average will sit around 2. 50 to 2. 60. That will put more money into the consumers pocketbook. What will cause the bottom . How do we know when this oil slide is over . You never know. As oil prices go down, what you have to see is the rate of growth of Oil Production has to start slowing in the u. S. To reach a bottom. That is not likely for another year or so. Theres bad news for other Oil Producers. The kurds and Iraqi Government announced an agreement to share their revenues. Well get another 300,000 barrels a day of exports into the mediterranean adding to an oversupplied market. Why are you saying the price of oil will probably continue to fall but you dont necessarily think the price of gasoline will continue to fall . Because i think the price of oil falling is a temporary basis. Even though gasoline will fall during the winter, what happens is we get to the spring, we go to the summer formulation, 15 cents to 20 cents a gallon higher. That is what the consumer will see. Theyll be scratching their head not understanding we changed the formulation. Even though oil prices fell. Good to see you, andy. Thank you for your time. Thank you. Apple off the lows of the morning. Down over 1 after yesterdays big fall of 3 . Some competing research out yesterday. Canacord highlighting demand for iphone 6. The Senior Analyst joins us this morning. Good to have you this morning. Thanks for having me. More survey checks indicating 6 is stronger than we thought . The crux of our call today is demand for the 6 is better than expected on two vectors. We are seeing a stronger mix with higher asp products. Consumers are choosing the 264 gig. That helps apple in their asps and margins. They are indicating a stronger mix to the new iphone 6 product relative to the iphones. Both those vectors will lead to higher asps. Thats where we think we are above consensus. Walk us through the margin impact, if consumers are upgrading to the higher memory. Sure. Iphone at a high s margin for the extra 100 you pay for the memory skew, that is high incremental gross margin dollars for apples. That higher mix relative to prior cycles helps the asps and Gross Margins for apple to take up margins. What do you say to your colleagues on the sell side who are like it cant get better than this, comps will be tough next year. Those are all fair things to did debate. What we are seeing with this apple upgrade cycle, its more sustainable. Our surveys are indicating not just the install apple base but Android Users are converting to apple. We think the higher memory skews, once you buy higher memory skews, you stick with it. This sets up apple with stronger earnings in future years than just the phenomenon with this iphone upgrade cycle. How do you explain the stock price yesterday . Did it spook a lot of people, that sharp fall . Whether it was a flash crash or fat finger. Is apple more vulnerable to these moves driven by High Frequency trading and algorithms . I think the stock recovered quickly. It clearly is the biggest market cap stock with lots of volume. Things like this could happen with electronic trading. You saw the stock recover quickly there after. We stick with the fundamentals and leave it up to our traders. We think the stock has more up side based on fundamentals. Thanks a lot. Thank you. When we come back, new yorks top Bank Regulators considering a strict Cyber Security regime for banks. Ben lawsky will join us with his new plans. Later, a big announcement from reebok. The president will be live on squawk alley. Im only in my 60s. Ive got a nice long life ahead. Big plans. So when i found out medicare doesnt pay all my medical expenses, i looked at my options. Then i got a Medicare Supplement insurance plan. [ male announcer ] if youre eligible for medicare, you may know it only covers about 80 of your part b medical expenses. The rest is up to you. Call now and find out about an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement insurance plans, it helps pick up some of what medicare doesnt pay. And could save you in outofpocket medical costs. To me, relationships matter. Ive been with my doctor for 12 years. Now i know ill be able to stick with him. 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I have a lifetime of experience. So i know how important that is. Health care one of the best performing sectors today. Biogen idec the leader in this category. This on news its experimental medicine for alzheimers showed promise in an early stage study. Overall a good day for health care stocks. Back to you. The fbi issues a major warning to businesses of a destructive malware that could make it impossible to recover lost or stolen data. What impact could all this have on Financial Institutions and Cyber Security regulation at banks . We know youve been looking into digital currencies. Now you are looking into the Cyber Security threat at big Financial Institutions. What have you found . Its an enormous, i would argue existential threat to our system. Its one of the things well focus on at the department of financial services. A major attack on our Financial System that is coordinated, hits multiple institutions at once, could disrupt trading could be incredibly destructive to our system . Its incumbent upon us as regulators. Do everything we can to make sure our institutions are as protected as possible. Could you impose rules on Financial Institutions to prevent tack attacks . One of the main things we do is examine our institutions and make sure they are doing everything they need to do to stay sound. They are typically. When it comes to cyber, well issue new guidance over the next few days weve been working on for a while now. We know exactly what examiners will be coming in and looking for. There are other things we can do. We have to coordinate with federal regulators and international regulators. The fact most of our systems here rely on a user name and password is incredibly insecure and very easy to hack. Its very easy through what are called phishing for hackers to convince someone who works at a firm to give their password over. They are giving it to someone inside their institution office. That lets people into the back door or front door sometimes at a company. It makes us incredibly insecure. If you put your i. D. In but you get a realtime password that comes back over your cell phone, someone steals your password, they cant get into your system because they need your cell phone. How much of this is about data at a bank versus credit card data you have at a bank through a retailer . I dont draw a distinction. There are huge threats to both. Another thing we need to think about is banks may have very good security. Theyve been spending hundreds of billions beefing up their security. If they use a third party vendor, a law firm, an accountant, an hvac system like 60 minutes that great piece. Yes. To some extent your security is only as good as your vendors. We need to examine our institutions for that, as well. What kind of reps and warranties are they getting from vendors about their level of security . Complex problem. We should be clear what is at stake here. The greatest fear is you wipe data from one of these banks, which becomes a lehman style event. For all the reasons immediately obvious. What the fbi issued yesterday is the technology they are seeing around the world. It hasnt hit us here yet is that. You cant recover the data. So almost there in the warnings they are giving. If you look at what jamie dimon said, a, there are no absolutes and unlike what you would expect from jamie dimon, he appealed for help. I wonder if there has to be a greater holistic approach from you and the fbi and everybody rather than setting a set of rules you can punish somebody for not object serving, you need to bring people i dont know how you do it, but you bring people together in another forum to fight as though you were fighting a boots on the ground war, in many instances. I couldnt agree with you more. This is not a regulator versus regulated issue. This is a we are all going to sink or swim on this issue together. The more we can do to Work Together as a Regulatory Community with the system and institutions we regulate have you started those conversations . Absolutely. They are happening but its an incredibly difficult, complicated issue. We should be as worried and as scared as possible, frankly. Its not a fun place to be. The more we are worried about this issue should be on every ceos top of their agenda and every regulators agenda. We are doing it, but a lot more needs to be done. Judge, we need to get to another item. The Foreign Exchange trading scam. You did not join the settlement. Why not . The fed didnt, doj didnt. Why didnt you . We werent done with our investigation. Its still ongoing. We are looking at it very closely. Before you ever settle a matter, we like to get all the facts. Each case is different. We tend not to do multibank settlements because that moves you away from looking at individual culpability at each institution. There may be cases where its warranted, but we tend not to do that. Sat recently with barclays. Met with mr. Jenkins. They are doing a lot and trying to fix that institution. He seems very committed to it. At the same time, we need to finish our work. We are talking with the fed. Talking with doj. If we can resolve it, we do need to get all the facts. That is still ongoing. Finally, there are reports that you are going to be joining the private sector and stepping down next year. Do you have anything to share with us . No. Im busy doing my job. Havent made any decision about the future. I cannot see you going to the private sector after 3 billion of fines as a regulator. What can i say . Well leave it there. Thank you. New yorks top financial regulator benjamin Republicans Holding hearings today to protest obamas action on immigration. The chairman will join us live after this break to explain what he wants to get done in his hearing today. Hi. Pete and jon najarian here in new york city outside of the nasdaq, where we bring you live daily market updates. And today, we have a very special free gift for you. So many viewers email us wanting to know our secrets on how we trade options. So we put our secrets into a new book. And if youre one of the first 250 people to call in right now and just cover shipping and handling, well send you a copy for free. Look at the rate of return weve made on some of our recent options trades, versus what we would have made had we just bought the stock. Theres no comparison. To make the best returns in todays market, you have to learn how to trade options. And our book will show you how to do it for free. Jon has been Trading Options for more than 30 years. Pete is one of the top 100 traders in the country. And our book will teach you how to trade options for free. So call now. [ male announcer ] call the number on your screen now for your free copy of jon and petes new book. Thats. see the number on your screen call now. Were for an opens you internet for all. Sing. Were for creating more innovation and competition. Were for Net Neutrality protection. Now, heres some news you may find even more surprising. Were comcast. The only isp legally bound by full Net Neutrality rules. Welcome back to squawk on the street. Rick santelli here. And robert goodlocke, congressman republican virginia. And chairman of house committee. Welcome congressman. Good to be here. At 1 30 eastern today you are holding a hearing. Can you tell us what is on the docket. This is on the president s unconstitutional power grab with regard to legalization of millions of undocumented immigrants who are in the United States and wiell have constitutional scholars there to testify. The president himself claims to be one. And there are nearly two dozen instances where the president himself said before he took these actions that he didnt have the authority to take the action. So that will be the focus of the hearing. Congressman, you said unconstitutional. And i guess there has to be some debate there. Because it seems, you know, i have all these memos from Homeland Security secretary johnson. Pretty much all is going to go into effect, most of it, january 5th. One question, issuing guidance. I tried to read them all. Very hard to understand. I think the issuing guidance part is going to be rather significant. Can you elaborate. Is that something that is going to be discussed by the committee how it is going to proceed in terms of being implemented . Yes. We will certainly be watching what the president s actions are. But the Congress Views this, particularly the House Republicans as one of the largest unconstitutional power grabs by any president ever. Let me stop you. Were going to get nowhere taking that road. Whether we agree or disagree. I did notice than attorney general in oklahoma who are has standing, is filing several injunctions against the executive action. Has anybody on the Judiciary Committee actually worked with states that are directly impacted by the enactment . Or as this moves into law with regard to the executive action, and standing to try to of course you know there is money involved a lot of issues there, where a injunction would postpone some this. It is true. Were working with those states that wish to take some action on their own part. Because the cost to the states of this is going to be enormous. But were also working with the leadership in the congress both in the house and Incoming Senate leadership about filing ourselves. Were limit on time. And i dont mean to be rude. Now if you arent successful and this gets implemented in in january, my question is do these 4 and a half to 5 million immigrants, do they get Services Like medicare, food stamps . Because in everything ive read i see the word unlikely. They are going to get Work Authorization and get the ability to travel in and out of the country. Whether or not they qualify for specific benefits now or some time down the road is not resolved. I dont think they should get the status at all when it is going to displace millions of people who are following the rules and in line the get legal immigration. And its going to effect american workers. They are taking jobs from people willing to hire them. When they have legal authorization they can take any job in america and i dont think the American People have folcusd on that as well. Congressman, we have 20 seconds left. Another thing on the docket is some of the fines collected by the department of justice are going to be used in what looks a to me like political purplive purpose purposes and organizations. Our Committee Found the settlements with the bank of america and citi group provide incentives to give money to organizations that use that money to lobby the government and they are not only required to give certain minimum amounts in the settlement but then incentive i incentivized to give money in these gruz. And for every one o dollar they give they get two dollars off their fine that is not how it should operate. s disturbing. Li id like to know who made the call and who decides getting the money. Thank you for the time today. Simon, back to you. Lets slip in a quick commercialbreak and well be back with squawk alley. 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