Cfo will join us first on cnbc. Staples and office depot higher in the premarket, reports two in advanced merger talks. First up Oil Prices Rising sharply on expectation of decline and u. S. Drilling activity. Bp posted better than expected quarterly results. Bp ceo bob dudley spoke this morning. I think its going to take time. Could be a long time. There is excess supply. U. S. Productions still growing. We see about the rig counts what its growing. And chinese demand of course great. Growth in china is not as high as it was. So we have stock levels filling up all over the world, tanks filling up. Wont be long before people putting them in ships and that take is along time to work its way off. Is there a lot of oil news today. Thats just one data point. I love bob. Hes late here. Theres already been a dramatic increase in the number of financial players taking down tankers. If you look at nordic and american tanker they will tell you that is happening now. Whats interesting and bob dudley, i know bp is hated by many people some people never go to bp again, but this guys a very good executive. Had to deal with different challenges. Bp exxon, chevron, whether by the buyback, what he said dont believe were at the bottom. Analysts are desperate to call a bottom. Saw one at stifel talking. Ann report anadarko reporting a big shortfall. Its all about letters. Whether a vbounce and by yearend back 80, 90 or a u and at 6 on if you think its u you dont want to buy, you want to sell them into this. What do you think . Im leaning towards u i believe what dudley said, First Quarter will have a gigantic amount of oil. A lot people say that so what . You got to move now. And if you feel like youve got to move now, youre going to be saying, ive got stocks that stifel said down 40 , start with the im not against that. Im not against that anymore. The downgrades have been theres downgrades every day. When theres this many ground grades i get less fear fls. Anadarko a big miss. People looking at charts of ge deciding whether thats a tell at this point. I think theres a lot of different tells. I think freeport really remember freeport bought oil at the top, its copper its gold. And downgraded by bank of America Today, buy to hole. A lot of buys. Stocks up premarket trading. Stocks are up and what it tells me is people are itching to get in. Bps quarter was good. Especially russia big surprise. When he was on dudleys like hes very wry. What are you doing in russia the most dangerous place on earth. He says ive got to go where the oil goes. Id never let my kids go there he said so what . Like hes tougher than he looks. But your point to investors who want to anybody is be careful . Yeah. My conoco up big yesterday. My charitable trust, please help me, please take it up, please. And now suddenly Everyone Wants to buy, we dodd goth a downgrade jpmorgan. No the stock didnt go down. When people see downgrades and stocks dont come down theyre emboldened, its 5 1, you think gasoline bottoms at 2 bucks. Core labs on last week reservoir scientists of oil. David betting me hes a really smart guy, betting me were at the bottom. I some of these guys you mentioned gas prices up seven days in a row, not a lot, but two cents after 120 days down. Smells like a bottom. Im in the u bottom. Were putting in a bottom. No doubt in my mind. Its the snapback. Bund boones a smart guy. No one think its going to be continuing to go down. Thats different from three weeks ago, where the consensus, could be 040, 35 i think thats taken off the table. More than half of the u. S. Gas stations at two bucks or below. Japan better numbers because of oil. I believe our economys going to benefit. Visa threw us off last week saying it hasnt happened yet. But it will happen. Europe i think, is clearly happening. I think theres a better tone in europe. Youve been saying that for a while. Said to germany, well play ball. But germanys got to play ball. Germany plays ball well get green chutes in europe. Optimistic. Sounds like theyll push back hard talks for a couple of months. Ukraine not good. Issues with china baltic freight not up. You see copper up for a couple days china comes back online. Everyone will regret they sold in january. U. P. S. , better reporting fourth quart earnings with lowered estimate. Issued a warning last month, citing higher holiday costs. Numberyear guidance below forecasts again. Talk with the cfo kurt kuehn. Built the operating model for volume that exceeded expectations and might have happened a couple days but it wasnt every day. They have a logistics problem and theyre the expert which is problematic. I i mean really. In terms of the timing and supply chain. Now, its a Great AmericanCompany Charitable trust owns it want to hang myself every time i see it in the charitable trust. Sometimes i want to slash my wrist. I know dont want to make jokes about suicide, suicides very real. A theoretical construct, how to guide down and cut again . Weve seen that from sandisk and that is the kiss of death. Now, the Conference Calls going on now. The problem with u. S. Is like seattle seahawks. Youve got to wait a full year before you come back. U. P. S. , not only did they throw a pick okay i mean it was a pick, but they intended to its like they intended, we cant possibly give it to lynch that would be too good. Like number 538 on eespn. No belichick was fedex, these guys are pete carroll and now youve got to wait another year. For the year 505 to 530. Street 505 to 6. Do a big buyback, boost the dividend, being more tough. I think that they lost credibility the second time or else we have a change at the top. Now, remember my change at the top, mcdonalds, got it. Okay . My change at the top, u. P. S. Not yet. Change at the top, twitter. Theyre digging their theyre digging their heels in my take is that it maybe they know the quarters good because a lot of people you have 110 Million People watching, maybe tweeters. Yes. You see Monthly Average user. Everyones talking about twitters going to do. I think only way he gets that affirmation is the quarter shows monetization. Otherwise, the long knives could be out for him. As they have been for a few. Bring in my i may bring well learn more thursday night on twitter. Meantime shares of staples and office depot up in the premarket. Both Companies Reportedly in some advanced merger talks. Activists investor Starboard Value pushing for a combination of two supplyretailers. Believe were overstored. Yeah. These guys are up against costco, tremendous business at am ma amazon. Versus cisco, the other sys. Trying to stop the food service thats anticompetitive. Well hear from david. To me this one of those things they would have hated it a few years ago but so many plays to get Office Supply it done matter. You mentioned david faber. I think we have him on the phone. Yes. Good morning. Holy cow. Good morning, guys. Good morning. Where are you . Say again . Where are you . Im in a trailer, actually. Trailer . Yeah. Yeah. Im doing a little tv work other than our own. I hope its the hoord kindhollywood kind. Yeah, it is. Your take on office depot. Listen i think not unexpected, we know what starboards view as been. Ive had opportunities to speak with them numerous times. You know the fact is while analysts may differ you can get to a number some would say, and this is on the high side as much as 2 billion in synergies. Whether its realistic ill let others debate. Thats the number here. And jims right, of course. We discussed this day one, the first letter which is we certainly saw a change in the way the ftc approaches the socalled market when it approved the Office Depot Office Max deal. But thanning said its anybodys guess. No doubt that you can get all of stuff you buy in a staples and office depot in a lot of different places and those say it differs from the antitrust opposition that we saw that stopped Dollar General from be being able to pursue family dollar. Well have to wait and see on the economics and how they deal with social issues to the extent they can get to the finish line here in any talks of who takes over. The current ceo of office depot thought to have done a nice job with the integration of office max. Would he be the ceo choice . Ron sergeant at staples, does he want to stay on as ceo and take on the potential integration . A lot of questions. But certainly something that people have will have time to focus on. David, let me ask you, the stock started going applause the 11 12 we heard this now its at 19. I mean, is there a place for the guys to say, the whole things gone up too much . One of these guys says its just not worth it to merge, or are these companies more desperate than we think . Thats a great question. I dont know the answer at this point, jim, and id love to get insight into the economics here in terms of what theyre talking about, whether what mix of cash and stock, and or to your point, you know it can be more difficult to negotiate a signature premium if youre office depot, for example, when your stock has already moved up substantially from the time when the first letter was sent by starboard. But that said, jim, i mean you all knee the land escape has changed. Certainly if theres an opportunity to capture those synergies you might want to take a shot at doing it though frankly, theres no guarantee at all that the antitrust is going to go their way. But it would be a fabulous merger. They compete against each other in a lot of places of course what the government shouldnt want then can shut down one here, one there staples cut a lot not productive. A terrific Domestic Company to invest in. Between radioshack and sears, the store closing shrink to grow, as we call it. Sometimes shrink to shrink. Radioshack delisted, wow. Whats come of it . David, safe travels. Hur huhry back. See you same place tomorrow. David faber on assignment today. When we come back disney and chipotle will explore what to expect from both companies when they report after the bell tonight. Also ahead stepping into the cloud, a live and exclusive interview with the ceo of vmware and your look at premarket on tuesday. Dow had five straight session of moves of 195 points up or down as volatility comes back. More jacques on the squawk on the street from post 9. 73 of americans try. To cook healthy meals. Yet up to 90 fall short in getting key nutrients from food alone. Lets do more. Add one a day 50 . Complete with key nutrients we may need. Plus it supports physical energy with b vitamins. One a day 50 for over 60,000 california foster children nights can feel long and lonely. I miss my sister. I miss my old school. I miss my room. I dont want special treatment. I just wanna feel normal. To help, sleep train is collecting pajamas for foster children, big and small. Bring your gift to any sleep train and help make a Foster Childs night a little cozier. Not everyone can be a Foster Parent but anyone can help a foster child. Two of cramers favorite stocks reporting after the bell tonight. Disney, dow component, pecked to report fiscal First Quarter earnings of 1. 07. Chipotle analysts looking for profit of 3. 79. Gas at play. Last Conference Call disney we dont have reaction to gasoline. Its going to turn out they done this is a seminal decline in gasoline. Youve got star wars later this year. Lets say youre disappointed youre not going to get back in thigh, before star wars. Espn had a monster quarter because of the College Bowl Series which was fantastic. I think that this football season, they did very well. Theres a lot to like disney. It does sell off you want to be there. Chipotle, i recommended this at 50. People say how do you know . Danny came on mad money listen, this is the complain to own, backing it ever since im think very point blank if they miss the thing, it would be surprising because year over year theyve got easy compares because guacamole very high and i also think that the price of the Natural Organic beef has gotten better. But these guys are great. Okay. Theyre great. A Great American company. I was having dinner last night, very funny, asking people what about chipotle . Chipotle shake shack, shake shack could be early, chipotle expensive. Chipotles never been cheap. And i cant wait to hear what they have to say. So good what they do. Piece in the Washington Post looking at fast casual what fast casual means. Some Companies Like buffalo wild wings, according to some data providers are fast casual others say theyre not. As a group, the categorys 600 up. I went to the chipotle website. You like to know what are they saying . Margaritas so good youre forget youre drinking from a plastic cup. Im organic, natural, food with integrity. Im also with a tequila, put me down for that. Ill take that. Liquor could be a big, big win for them. Big. And circling back to disney as well frozen the phenomenon from last year they are going to have a short. I think frozen short when cinderella rolls out in march. And as far star wars iger said episode 8 comes 2017. Episode 92019. Lays out a road map. An article in the paper saying that theyre going to get a delay in china. Again if you sell it off that try to get back in. Take a look at the chart on this thing. Almost impossible to get back in. Every time that theres some disappointment, its been such an amazing buy opportunity. Im going to say thats probably going to happen again. Gilead tonight as well. Gilead, interesting to see what they say about the deals they had to cut up. Cramers mad dash, count down to the opening bell. One more look at premarket on tuesday. A lot of cross currents. The euro twoweek high. Headlines out of germany and greece awfully interesting. More jacques on squawk on the street from the nyse. Thats more. Shh. I know thats more than 100 . But thats what winners give. Now bicycle kick your old 401 k into an ira. I know, i know. Listen, just get td ameritrades rollover consultants on the horn. Theyll guide you through the whole process. Its simple. Even she could do it. Whatever, janet. For all the confidence you need. Td ameritrade. You got this. Know that chasing performance can mean lower returns and fewer choices in retirement. Know that proper allocation could help increase returns so you can enjoy that second home sooner. Know the right Financial Planning can help you save for college and retirement. Know where you stand with pnc total insight. A new investing and Banking Experience with personalized guidance and online tools. Visit a branch, call or go online today. 8 30 until the opening bell on tuesday. Lets get cramers mad dash. 3d stocks going to get popped. Might be a new term lets move to sports, when marshawn doesnt get the ball and toss into the scrum, youre doing a stratasys. Disaster. This is one of those situations where theres a writedown, jpmorgan, citi piper, the preferred. Now i backed away from the group because hewlettpackards coming in. And i had gone to see the hp 3d. These companies are secondary players once hp comes in. Maker bot, everybody thought terrific. But they had the wrong product, wrong time, price competition, 3d systems going down too. This moment captured the fancy of america because if you go to youtube, you see 3d, its very exciting. I went to see hewlettpackards 3d, they made a bobblehead, it was better than the actual bobblehead better than i am. Cramer said something right. But i do think that you cant even get in here. But it does does it make you question the legitimacy of the market or just the stock . This i think that its very real. But i think that there are new versions coming out all the time and this is a built in on sole less lens. Hp a 2016 issue. Thats going to freeze the market. Youre not going to want this. When hp comes out, theyll really take it. Auto sales today. Weve gotten crisler with a good beat. Phil lebeau has ford as well. Ford reporting january sales of an increase of 15. 3 , that is a little below the edmunds. Com estimate of 17. 8 . Waiting to find out details here. Remember, still ramping up production of the new fseries. The kansas city plant still down. Numbers might be light. Chrysler nissan and chrysler both reported best januarys ever. Ever. Not just since 2006 or 7 best januarys ever. Well get the gm numbers in six minutes. Back to you. Thank you. I mean autonation 17 million units, mark fields terrific job at ford turning it around, good yield. Phil mentions chrysler. Jeep up 23. Yeah. New cherokee suv up 44. Kelly blue look looking for the bestian in nine years. Not the stuff of depression. Not the stuff of gloom. This is the consumer doing better spending worldwide. Oil coming down little bit more flush, some units turning around i think that europe could turn no one believes that. Thats what i like. When no one believes when you want to be in. What gm and toyota and other guys say later this morning. El woo well get the opening bell in 5 30. Dont go away. Opinions. Theres no shortage in this world. Who do you trust . Whose analysis is accurate . How do you make sense of it all . A simple unbiased stock score consolidated from the opinions of independent analysts. Is that too much to ask . Nope. Equity summary score powered by starmine, will help you execute your ideas with speed and conviction. And its only on fidelity. Com. Open an account and find more of the expertise you need to be a better investor. Youre watching cnbcs squawk on street on tuesday. Live from the Financial Capital of the world, opening bell in about 2 30. And a lot happening today. Of course the dows gone through a series of volatile sessions. Basically made up for friday yesterday. Yeah. Almost to the point on the s p. Oil started going up and people felt that maybe the dollar not going to be so strong Interest Rates you know, went up a little. These are things that typically you would have sold stocks on but in a bizarreworld we want normalcy. Normalcy is not to see a commodity plummet. Normalcy is to think that maybe things are better. I think a lot of people felt in last few days internationals gotten so bad our earnings will be hurt. Anything that changes the tone the narrative more proeurope more projapan if china comes into place, wow. Thats whats behind that term. The german tenyear yield fell below japans first time ever. That was a little strange. In greece, head leans. The finance minister says no uturn on our strategy theyll meet with draghi this week. Germany expects these negotiations to go on until april or may. I dont know. I was watching the finance minister. What i think a lot of people feel greece is full of knuckleheads. This guys he really does listening saying look out germany, you may have met your match here in a small country with a articulate guy who says austerity failed whatever you told us to do has not happened so lets rethink the game plan. I think germanys blinking here thats why theyre going up. Another one that what is cramer smoking . Im telling you, germanys blinking. Delaying hard part of the talks . Yes. Germany says it hasnt worked. I think theyre worried about the right wing everywhere in europe worried there could be a revolt against the many regimes, if greece gets out of control. I think its something thats being viewed as positive not negative. Interesting. Well see. Some argue, germany wants to get greece to where germanys leverage is highest and greece is closer to that end point, so to speak. You said wear wear the merkel pantsuit. I think that merkel is basically saying you know what . Weve had a great run here. I guess weve got to give in a little. Im saying rally hasnt an explanation. Its not idle. It says euros going to survive and europes going to get better. The opening bell and the s p at the top of the screen. Down here at big board, sap and bill mcdermott, hes been on the program a couple of times, provide of Enterprise Application Software marking in investor day today. As the nasdaq cerner speaking of medical, aetna today, 1. 22 meets. Revenues beats. Raising fullyear view 10 cents. That groups been very very strong. I like United Health stephanie link i work with likes i mean these stocks have been in a sweet spot not going away. Especially with hiring. Medical, Affordable Care act cycling through, theres a lot to like about the group. Theyve been in the dog house for a while. We gotten Chrysler Ford auto sales. Lets get gms with january numbers. Phil lebeau. Strong numbers for january for General Motors. Sales increasing 18. 3 , thats a couple ofedmonds. Com estimate. First january topping 200,000 vehicles sold in at least six or seven years. Best january going back to 2007. Two numbers will stand out, guys. Truck sales last month, up 42 , suv and crossover sales last month, up 36 . Huge numbers from General Motors. Back to you. Thank you. Gasoline means buying the big cars again. Thats very important. It doesnt cost you a fortune to fill up. Green chutes. I know start being more negative. Its hard. Facts are held on the positive side. People are believing the prince when he tells us were never going to 100 every again. Amazing interview. I keep going back over there. Hes a harder guy to disagree with. Hes boots on the ground with the swing producers. Yeah. Meantime mcgrawhill, s p, 1. 5 billion settlement with justice in 19 states not admitting guilt but of course this settlement, litigation related to issuing supposedly knowingly issuing good ratings for mortgage bonds back in the crisis. Anything that puts this behind you makes people enboldened. People still are thinking that the banks arent through this period. As we get further away from the great recession, people will pay more for the stocks because they feel the legal morass is ended. Troubling the banks. Still is. Keep going back to jamie dimon saying regulators are all over them, one of the reasons that stock went down its bouncing but they need rates higher. I just think that that groups so far behind the market. Bank of america quarter wasnt good citi quarter wasnt good jpmorgan wasnt that good. As far as leaders today, its transocean, eog, anadarko halliburton. 50 was the level where people feel like its bottom. Watch eog that had the best product profile. Anadarko Conference Call didnt matter whether they had a big miss. People want to own the group. When they want to own the group, theres a lot of fire power on the sideline. I think its kind of its a little counterintuitive the majors are saying theres no bottom. At the same time look at declines in the stocks. Declines have been stunning. And theyre not going under, these guys that theyre buying. Theyre not. Airlines getting a taste of it another day here. Got to be careful with those because they didnt go up when they reported last quarters and now they got the fuel costs, hedges are off, really look very inspectancive. American air at six times earnings. Look at big, independent Oil Companies not doing badly, and i think, well theyve been cut in half, do some buying. Yeah. Chevron reported a not great quarter and its now up seven straight points. What does it tell you . People want to own the stocks. You mentioned investors leery as we work our way further into earnings season. Levels from december continue to hold and technicians taking heart from that. Do you . There yes, absolutely. Look theres january period was a very bad period. I think we lost a lot of people. A bunch of times when januarys bad and the rest of the year is good three straights times yes. The december 15th low in the oils, for almost every Single Company other than service companies, they all these stocks very far from december 15th low. December 15th low when oil at 57. So some are saying you know what . Lets do some buying. It is i think the stock to watch is this freeport because its got all of the wrong things. Bank of america folded and people say listen maybe thats a bottom when you get capitulation like what you saw for with bank of America Today and fcx. Wendys, 10 cents is a meet. Revenue miss sell more restaurants to franchisees, recap the Balance Sheet, using excess cash for stock buybacks. And neil has done a remarkable job. Works closely with nelson pelts. Weve been recommending wendys since redesigned my wendys, put the tv in we have been recommending it since 4, 5. Broelic unbelievable operator. You stick with wendys. Do not sell wendys. Good up ins. You prefer shake shack at these prices . The shack is going to have people never going to sell because they love it, thats fine. I love the taste of chipotle. Most people in chipotle shack will you have to own shack for a long time for it to grow into its multiple so to speak. Wendys is cheap. Shaq at 45. Pricing at 21 as i recall. Dows up 155. S p back to 2037. I dont think pisanis good yet. All so good. You know look domestic is good. Im watching General Motors. Last few quarters that general noters reported blowout numbers in the month, rallies have never held or the stock sold off. This time not going down thats interesting. Oil going up a bit. Youve got the companies that do well in oil being down going up. This is kind of a sweet spot right here. And very unexpected sweet spot. People are beleaguered. Even yesterday morning its like februarys going to be as bad as january and that rally at the end seemed it had some gravitas behind it because you needed to see oil out of the 50s out of the 40s, in order to think were not headed back into recession, which was the chatter. We started getting chatter about manufacturing. Theres a wall street journal article about manufacturing doing badly. What happens if manufacturing makes a comeback because the rest of overseas doing better . Absolutely. And interestingly, as bad as last january was, the first day of february last year was also bad. Yeah. We had that pattern in the morning. I know i left here in the morning, i said im surprised. We have had all of the bad. Now were going to be away from international companies. Were going to get some domestic companies, retailers are going to be great. Costco reacted to special dividend. Costco saying look at me were doing great, and no one cared. Thats wrong. Thats wrong. This is a better situation than we think. Yeah utx. Less than i thought but still good. Bob pisani on the floor. Good morning. Good morning. Three things today moving the whole market. Europe oil, and earnings here. Take a look at oorp. Up all throughout the morning on some hopes some deal struck in greece. Obviously, nebulous now. But greece up 11 . Spain, france and germany all strong. Germany at an history exhigh. Other talk is about commodities bottoming in general but oil in particular. Its bearish news. Bp announced 3 billion cut in Capital Expenditures for 2015. Interestingly, stifel trying to call a bottom. Upgraded several Exploration Production spots including anadarko despite dis disappointments. And clear on oil prices. Claiming 2016 average prices 65 a barrel. Thats a very modest number. Here what happens they said. We an tis pit a rebound in price as u. S. Supply growth slows, demand improves and the dollar tops and begins to weaken over the next 12 to 18 months. A comprehensive note that they had this morning, commenting on this. Bottoming, by the way, early signs of bottoming copper as well. A few days does not make a rally. Down to 250 a pound. Weve been up the last couple of days. Thats a good sign overall. Down 20 in the last six months not as bad as oil, down 50 . But people have noticed this as well. Copper stocks also begun attempts at bottom. Big guy freeportmcmoran up 5 . Southern copper scco up 3. 5 as well. Lets talk about car sales. I mean a lot of disappointing Economic News recently but car sales isnt one of them. Historic high for autonation up 8 this morning. And they just had great numbers, not just a beat but comp sales right across the board. Above expectations. Look at these numbers, new vehicles up 9 used cars up 7 . Biggest new vehicle seller in the country. Parts and service, smaller parts up 10 . New vehicle sales in january, they had a separate report up 20 , numbers were great. Just a moment to give kudos to autonation. Look at sales figures, every single year they have doubled since 2009. It was about 9 billion, 10 billion in 2009 and every year its gone up 2014, expecting likely 20 billion sales north of that in 2015. Kudos to a Great Company that keeps improving every year. A nod to General Motors . Hope you heard phils report a few moments ago. Sales up 18 . That was a terrific one. Great numbers as well Chrysler Nissan reporting their best januarys ever. Finally, just a nod here to radioshack, you heard last night, New York Stock Exchange delisting that company. Rsh no longer thats the symbol. The company exists. Now trading on pink sheets new syllable, rshc. Right now the dow up 158. Well talk later about what may happen to some leases. A lot of things happening making people think, i dont want to miss a bottom. I focus on eaten said organic growth, 3 4 . U. P. S. On the Conference Call saying demand is not the issue. Maybe get more bullish. Things that are happening that are not going to be rolled back very quickly. All right. With all of that to the bond pits. Check in with Rick Santelli at the cme. Good morning, carl. If youre a fixed income trader of high qualify sovereign, things arent acting the same last 24 hours, even the last week or so than they did in the early part of january or most of last year. Creeping up. Look at oneday of tenyear yields, maybe part of thats the third day energys up maybe whats going on with greece. Well get to other interesting reasons. Twoday, technical reason. We firmed up after topping out through yesterdays high yield, low price. If you look at year to date one thing that isnt good 1. 71 low yield close from midjanuary, that was slow to be violated where the 30year did faster reflecting flattened curve. Back above. This is a different modus operandi. Bund yields, look at a 24hour chart. Notice yield of 33. Notice that its up a bit. Now, lets look at a jgb, 24 hour, its yield 36. Boy, i dont know if ive ever been able to say ten year jgb yield is higher than a bund yield. Look at the chart going back to december 1st you can see at the highest yield since december of last year. Flip it around. Heres another dynamic altering the landscape. Yeartodate euro versus dollar firming up. Versus yen, lesser extent. Big, long, packed up trades reversing . Seems they are, at least in small doses. Back to you. Rick, see you in a minute. Rick santelli in chicago. Oil, of course as jim said is the story of the morning. Jackies at the nymex. Good morninger. Wti seeing a dollar a gain. Breaking that crucial level of 50. Bren crude 53. 87, more than a buck. Weekly gains, wti seeing 10 pop in a week. More than 13 for brent. Yes, you have Short Covering here but also commitment of traders reports showing new buyers coming into the markets here. Some of this is technical as well. Traders saying when we hit the top in japan we broke through. The upside next level. Got refinery strikes continuing as well. Yes, small because they only impact 10 of the capacity but bullish. Retail gas prices so low, that seeps to have triggered demand in the marketplace here. Seeing retail gas prices creep back up, aaa saying average for a gallon of regular 2. 07. This is the time we see refining rates reduced and also switch over and see the demand for this spring driving season. Yes, spring start to pick up. Prices could be creeping to upside as well. Back to you. Jackie thank you very much. When we come back u. P. S. Cfo kurt kuehn on earnings and challenges facing the company as it battles fedex and the Package Delivery wars. Dows up 168. S p up 16. 5. More squawk on the street continues in a moment. Approaching medicare eligibility . You may think you can put off checking out your Medicare Options until youre sixtyfive but now is a good time to get the ball rolling. Keep in mind medicare only covers about eighty percent of part b medical costs. The rest is up to you. Thats where aarp Medicare Supplement insurance plans insured by Unitedhealthcare Insurance Company come in. Like all standardized Medicare Supplement insurance plans dows up 168. Take a look at dow. Of one comp ent in the green, everything not worked all year working today. Its merck one of the best performing dow stocks of the year, in the red. Probably shorts doing covering here, jim. Yeah, i think thats true. Seeing things like anadarko, just now on the Conference Call they dont expect oil prices to be worse. Thats a bottom hold. Keep in mine a company that makes rigs theyre saying a lot of the customers reduced. Thats regarded as positive. Hear sharply reduced, people say thats how you get that v bottom. I think u bottom more likely. Yes. No ones talking about no bottom. Thats whats taken off the table. We were in a bo to thebottom a couple of days ago. More of the shape of the letter, shape of the return. Very significant. Seeing things that are happening right now with oil up at the same time auto sales amazing. Retail doing bet, seeing good things overseas. I dont you come up 170 middle of the day, someone spreads a rumor about greece this or that a better chance to buy. News flow is as good as the news flow was bad last week. True. After the chevrons had done their thing and royal dutch, all of the cap x made. People readjusting. A Conference Call that said listen i dont know guys big drill, service company, were dead were dead. When everyone says theyre dead is when things come back to life. Some companies are Great AmericanCompanies GoodBalance Sheets im not talking about ones with bad Balance Sheets. Those are ones that exxon said well do acquisitions. That exxon Conference Call had been pretty good and im not a big fan. Its interesting to see how these big integrated are built for these environments. They really are. I mean you know exxon is one of those companies, its tortoise. We know that the tortoise wins in the super bowl ads and certainly winning here. Exxon, really new york fan of exxon, but a lot of things that they said that basically said, we are ready. And to hear that a companys ready for oil price cut in half impressive. We are shifting to macro and jobs in a few days. Three days to go until the jobs report. Another chance to nail the number. Tweet us predicts for january nonfarm payrolls. Winner will receive a prize perfect for winter. Cnbc ear muffs, autographed by the squawk on the street gang. Youve seen these. Sign the case. Heres the case right here. Well get you a pen, too. You want these. These are wow. I cant believe it. Its like you will have, of course, until one minute until the jobs report released friday to tweet us predicts. Consensus 235 . Look everythings stronger in january. I dont know what to say. Look, theres a couple maybe weather could. The datas strong. I thought, by the way, when listening to what rick was saying today i mean worldwide, theres a sense of maybe things better. So funny it could happen quickly. I know people should be skeptical. Who doesnt like 2 gasoline . Who doesnt like it . Not to say people are not going to nitpick and worry about the wage component. Got to see wages go up. The president unveils the big program, you think a partisan brouhaha, next day, were forgetting about it already. I like that too. Washington no impact thats good. Talk more about the budget later today as well. Well get stop trading with jim. Dows up 183, close to session highs after 20 minutes. Whats that thing . I moved our old Security System out here to see if it could monitor the front yard. Why dont you switch to xfinity home . I get live video monitoring and 24 7 professional monitoring that i can arm and disarm from anywhere. Hear ye the awkward teenage one has arrived dont be old fashioned. Xfinity customers add xfinity home for 29. 95 a month for 12 months. Plus for a limited time, get a Free Security camera call 1800 xfinity or visit comcast. Com xfinityhome. Time for cramer and stop trading. People forgot about linkedin. Its been terrific. Goldman sachs goes buy the strong buy. Using a big price target, 2. 83. You dont stick your next out when you know its going to report and say its going to be fine unless you have very high confidence. Linkedin could reignite a group people have forgotten about, social media, those that have not done that well. I think its a gutsy call to look at a name thats forgotten but doing well. I like this call. Interesting. Very interesting here. We talked about twitter earlier in the hour. Stunning that both twitter and facebook have settled into narrow ranges that have lasted for more than a couple of months. Twitters case 37 to 40. Coned, and southern move more than these. Wonder if costello will say, what do you think of dominion, its going up. Maybe zuckerberg says i prefer west coast utilities, much more volatility. Its amazing when you think about. Twitter used to be a stock always on the move. And now its stuck in a rut, as people think its binary going up big, personnel change or go down big, maybe on bad Monthly Average users. Whats on mad tonight. Kinder morgan. One of the biggest. They know more about oil than anyone in the world. Also a Company Called fortnet, people love cybersecurity. At the fulcrum of that. Sandy cutler, he delivered. A couple of disappointing quarters. Look at this almost up 10 . Buyback, nice maybe bigger buyback coming organic growth. Eaton is back. Significant because its been a huge disappointer of the industrials. Being driven by what . Is it airspace. Very, very good. Taken out a lot of costs out. But they have a good european exposure. Listen tonight, honestly. To see this one back is to say, you know what . Industrial america, dont write it off. Its been a while. See you tonight, jim. Thank you. Mad money 6 00 p. M. Eastern. More coming up including the ceo of u. P. S. And vmware on his companys cloud strategy. Dow closing in on 200point gain now. What can your fidelity greenline do for you . Just take a closer look. It works how you want to work. With a Fidelity Investment professional. Or managing your investments on your own. Helping you find new ways to plan for retirement. And save on taxes where you can. So you can invest in the life that you want today. Tap into the full power of your fidelity greenline. Call or come in today for a free oneonone review. Good tuesday morning. Welcome back to squawk on the street im Carl Quintanilla with sara eisen and only sara eisen this morning. Lonely. Simon hobbs, of course, on vacation. Check out the markets this morning. Dows up almost 200 points as we get a bunch of interesting cross currents. Oil driving a lot of that, up 3 . You make buys at anadarko and others binning to talk about an oil price that doesnt go low somewhere starts to stabilize here. In the meantime macro data continues to inch our way. Lets get to chicago. Rick santelli and a look at factory orders. Rick . Absolutely. December factory orders expected to drop close to 2. 5 added an extra percent. Down 3. 4, first of 2. 4 expectation. Last month, added awhole percent. Being a december number this will of course help get closer to the granular final number of Fourth Quarter gdp we enter last week 2. 6. Draw your attention, a few minutes ago we had ism new york released, and then for the month of january and it was 44. 5 versus 70. 8. That is the lowest level on new york ism since april of 2009. So of course everything is right in the world, equities up 1. 70 or so and Interest Rates up. But it doesnt quite seem to jive with data. Make sure you look at spreads and Interest Rates across the globe. That helps explain it further. Back to you. Thank you, Rick Santelli. We should mention with the dow up 180, best twoday gain since january 7th and 8th. Dominic chu, breaking news on lear. Another hedge fund going activist on the company, its marcotto according to a letter dated today on cained by kate kelly, lear should split into two publicly traded Companies One focused on auto seats the other on Auto Electrical components. Seats makes up 3 4 of total sears at lear and counts the like of gm and ford as biggest customers. Koum koum could be 45 more than current prices and wants an immediate Share Repurchase of abillion. A 4. 6 stake in lear. Recall that lear reported earnings and revenue last week that exceeded analysts expectations for kate kellys story, go to cnbc. Com weve got interesting did pits about what marcato has been doing and a storey with lear. Stock up 3 right now. The Broader Market is in rally mode, dow up 180. Oil is the story of the day, crude prices shooting up wti and brent rising more than 10 for the week. Could this mark the end of that record slide . Bring in stifel Portfolio Manager and Wells Fargo Institute scott ren on the u. S. Stock market big over hangs Lower Oil Prices and greece. Both appear to be in better shape. Does that mean the worst is over . I think theres a long list of things but certainly those two things had a lot of weight. I think part of whats playing into this is you know valuations if you look at a 30year median or Something Like that on a p e basis, still below those levels. I think that weve seen a lot of Economic News in the u. S. Lately that has been disappointing. You mentioned the chicago ism number. Yesterdays ism number. Were almost in a little mode here when whats bad is good for the markets. You get this questionable Economic News, we know whats going on overseas and it just makes people think that hey, feds not doing anything anytime soon and i think thats been a positive boost here on the rally back. Perhaps the story behind the treasury market now, also rick pointing out the data hasnt been great. Just on the oil and stock market link, can you call a bottom on oil with big cuts bp cutting its capital expepds tursnditures 20 for the year. Weve been bearish at oil here. Up until this point, we would go neutral on oil in our allocation. We believe though the Global Growth is decelerating and supply will eventually normalize over the course of the next lets say, three to six months. So this level here if it goes down to 45 a barrel wield be buyers at this point. Looks like Inflection Point the other way. Chad you see it going down further. So you do not see balance right now between the market that was thought to be so oversupplied and then whats happening in the u. S. Spending projects being cut . You have two problems. Global growth deceleration a demand issue as well as supply issue. We do believe that there is an issue with the overall global activity. But, nonetheless, we believe that downside to on oil price is 45, 40 a barrel. For Value Investors looking for seams of opportunity wed look towards companies that perhaps are well capitalized within the oil and gas complex. The other factor moving the markets this morning and continues to move markets Central Banks and currency market. You mentions Federal Reserve. Overnight australia became the latest to surprise cutting Interest Rates, weakening currencies. All of the central bank easing enough to offset no action from the fed . No i think you are going to get fed action. I think the late half of the year potentially third, Fourth Quarter but move in the matter of a quarter of a point. What is the feedback . We dont believe that is priced into the market weep would be somewhat more cautious for Equity Investors as value investor, were not seeing great sooerm sooerm seams of opportunity so we move up the quality spectrum. The Federal Reserve is in a tight bind. Inflation will come in 1. 5 for 2015. Nonetheless, still, youre going to have ebullient jobs market. Thoughts on that ahead of dp and and jobs report and fed talk . The string of numbers 200, 250, lets say, that nonfarm payroll jobs added, thats good not great. The labor marks going to continue to slowly improve. Theres not going to be any wage pressure, at least based on our work anytime soon. So, you know i dont think we have a lot to worry about with the job market really taking off and wages accelerating. I think that is a very very low probability, modest gains, thats good. Well see in fridays number. Thank you for weighing in here. Shares of u. P. S. Flat this morning, after the Company ReportedFourth Quarter earnings that matched profit expectations, beat revenue forecasts. Worlds largest Package Delivery company, however, did deliver a downbeat outlook for 2015. Joining us this morning first on cnbc u. P. S. chief financial officer, kurt kuehn, also a member of our global cfo council. Good to have you back. Good morning. Great. Good to be here. A couple of nasty downward revisions to guidance. Why are they happening in such rapid succession . Well we did, you know we did face some challenges this peak season. We loaded up very much to be ready to handle the surge in holiday volume and it did come and u. P. S. Was extremely successful in handling it. But it did drive a lot of extra operating costs. Earnings were below expectations. Sounds like the inverse of last year. Is that sort of how it worked . You wanted to make up for mistakes of christmas of 13. Yeah, certainly it was, you know, we wanted to make sure we had all of the capacity we needed to handle the growth. We saw a huge growth 1 yearoveryear, butt on cyber monday and on that last couple of days before the holidays. But then the couple of weeks between there was lower than we expected. And so that made us underutilized during that time period. We will address this disparity with cost actions. What are we talking about . Well the holidays are a great, exciting time for us but it does create a challenge to ramp up on our peak day, were more than 100 growth over our normal volume level. It does take extra operating expense, extra capital. And over time we will have to adjust pricing and make sure that were compensated for those big investments. Curious how the low oil price is affecting you. I know it hurts when it comes to those fuel surcharge revenues. Do you see it as a net positive in terms of boosting Consumer Spending . So far its a drag for you. Yeah. I mean we do the revenue, you know follows the cost production, we do think its a great boom for the consumer weep think long term low oil prices is a positive for the u. S. Although it creates disruption. So on net, its a positive. Although it does create disruption for us in the transition. But were bullish on the u. S. Economy. We think its going to continue to improve. One thing we did see is that our commercial volume our b to b volume up over 3 in addition to the strong growth from b to c. What do you see for international . That Revenue Misses expectations. Obviously the strong dollar hurts what happen do you see international in terms of demand . Does it hurt these moves when it comes to forecasting. Bottom line it is challenging. You know we expect this year to have over 50 million of earnings hit though we hedged euro pound, canadian dollar. All of the other currencies have moved so much. But what it does is it changes trade flows. Europe, we are seeing increasing volume in important for us adjust our network. U. S. Exports have more of a headwind because of the strong dollar. Finally, are you losing market share to the u. S. Postal service at all . Did you see that over the holiday period . Analysts worried about that especially the relationship with amazon. Well certainly market share is not a concern right now. U. P. S. Is growing very strong you know we showed shipments up over 6 in the u. S. So were in great shape that way. The trick for us is just handling all of the surge in demand and doing it properly. Some of the downgrades of the past couple of weeks kurt criticized what the analysts believe are the new sort of management priorities. First customer service, second share, and as barclay said somewhere down the line earnings growth. And their argument leaves investors riding in the backseat. Is that unfair . No it really isnt. U. P. S. Has been a Great Company for investors for many years. For 92 years were a private company. The broad Management Team has holdings in the stock. So we are just investors for the long term. So we think meeting customer needs assures good returns over the long term and focused on building this company to pros ser for many years to come. When do moves actually start to pay off in terms of profits for investors . Yeah 2015 will show some progress. Were looking for 6 to 12 profit improvements. Its not as strong as wed hope for but we think in the second year to follow and some of the projects and initiatives will take two to three years that youll see substantial benefit across a lot of fronts. Kurt interesting quarter. Of course we appreciate you coming on and talking about it as always. Good to see you again. Great. Thank you. Kurt kuehn from u. P. S. Attorney general eric holder holding a News Conference any moment from now, announcing that settlement with mcgrawhill financial and ratings with the doj, attorneys general of 19 states District Of Columbia and pension fund calpers. S p trying to resolve accusations of knowingly inflating Credit Ratings to win for business from issuers. Calpers brought the lawsuit in 2009. Once that begins, maybe well get a couple of data points possibly taken live. When we come back bp earnings out. Nice surprise windfall from its stake in russias oil giant. Stocks doing well. Retail names, a Staples Office depot merger . More on those stories w. The dow up 157. Return in a moment. Stock markets across europe up more than 1 at this hour. Headlines out of greece boyy stock markets. Michelle carusocabrera back at hq with more. Last i looked athens up 11 . Not surprised. Minute by minute headlines out of europe but one moving the market the most new greek government, sara backing off on one of the major demands it was making when it came to office just one week ago today. No longer insisting on forgiveness fore50 of the debt that they owe to other European Countries. New finance minister varoufakis, on a tour across europe this week announced late yesterday that greece would no longer press for forgiveness or a writedown, as its called in the bond world. Instead ask other European Countries to accept a swap. Give new bonds, which instead of having a fixed Interest Rate will have payments that are linked to greeces growth. I have spoken with the minister on multiple occasions and uses the word gdp warrants. In other words, get a piece of paper that says you get paid when greeces gdp, its economy, hits certain benchmarks. We have built this graphic to show you to whom greece owes money and how much. This isnt all of greeces debt this is 300 billion. Biggest amount, first block on the left the biggest amount nearly 200 billion to other governments. Thats what they were trying to get cut by half. And have backed off now. Ecb the second largest amount 27 billion euros. Greece also wants ecb new bonds linked to growth. Greece has not backed off on the demand. Giving an invut last week he said no way, no how is the ecb ever going to go for that. So, next waiting to see will greece fold on that demand, too . Varoufakis meets with draghi tomorrow. Ecb debt is problematic. If we can roll over to the calendar. Here we are, the reason is this hurts their cash flow they are supposed to make big principal repayments to the ecb right here, july and august you can see, total of 6. 5 billion euros. Thats why theyre concerns about the ecb debt. For now, celebration in the markets, as you said. Euros up. Curious what this means for greek people. Tsipras campaigns on the idea cut back on austerity, boost spend, boost the economy. The debt negotiations are important here at the technical level but when do those other promises kick in if at all . Theyve already started to institute some of those promises, which go absolutely against all of the terms of their bailouts some at some point thats the next thing that we watch to see whether or not they back off on those things as well. Look, for the greek people it was going to be bad, no matter what. Greece lived off of other money for too long and their economy is still to this day not competitive. So far, theres not a lot happening in there thats going to ever make their salaries go up unless they make real changes to overall greek economy. What happens proposed by the new government is not this stuff that would lead to that. Thanks very much for now for breaking down complicated negotiations michelle carusocabrera. Bp out with results. The first oil giant to post a quarterly loss but did top analysts estimates. Bob dudley addressed importance of maintaining the dividend earlier when talking to cnbc. One of the things dweel in the Financial Framework is protect the dividend. Thats number one priority. Weve got lots of shareholders, pension holders, that this is vitally important. And that is really number one. Clearly investors reassured to hear that. Profits at oil majors are taking a beating. Lets bring in Stewart Glickman of s p capital. Its interesting to watch reaction to bp shares. Theyre higher. Exxon yesterday higher. Other guys have been getting killed on lower earnings. Is in just you want to buy the stronger Balance Sheet company when it comes to Oil Rebounding . I think there is a flight to quality going on for a couple of months with everyone pretty scared about how low oil prices might fall. And when times are in crisis like this you turn to companies with better Balance Sheets. Its interesting that a lot of the companies, not just bp have talked about protecting dividend. And i think especially for the larger players, they have the Balance Sheet that can handle Dividend Payments and modest Dividend Growth but also so large that theyre not generating a lot of organic Production Growth. I think theyre increasingly becoming providers of financial returns with dividends and buybacks and less so with actual Production Growth in terms of number of barrels. So on a day where everyones enthusiastic and starting to anybody here not only do you cut your target on anadarko you take bp to sell and cut your target as well. Anything you do like . Sure. So within each individual subindustry and energy, we like we have a strong buy or five Stars Opinion on eog resources. Its a pure play e p but in our opinion, best of breed in the industry with some of the best cost metrics around. And one of the earliest movers into the u. S. Shale, which i think these companies have become so prolific generating Production Growth, thats why we got into the mess in the first place, but eog does it better than most companies, in my opinion. Oil Services Side we still like schlumberger, most internationally focused least i would argue north american exposed Oil Services Company out there. So, you know there are names that we like. But on a fundamental basis, sure we think its largely negative to neutral across the industries that we cover. The only exception midstream, a positive fundamental outlook there. You dont sound convinced. For all of the people who are assured that were going back to 55 on west texas you say take a chill pill . Precisely. You know were looking at the ben tech Energy Forecast its a Sister Company to s p capital iq the crude oil forecast for wti5 51 a barrel. People have a hope in 2009 we had a really strong vshaped recovery, why cant it be like that now . Buying up oil on the basis its a quick crisis eviv lent of the 24hour flu. I dont think its going to be this time. The oppenheimer analyst said yeah this is a painful earnings season. We expected that. Even if prices rebound to 60 70 a barrel last year the average price was at 93 a barrel. Its going to be awfully hard to compete with that when it comes to earnings for the year. Yeah. We got pretty insulated from crude oil price volatility. Crude average for wti, crude average mid 90s, 2011 2012, and 2013. You forget how volatile these things can be. Youre right, its going to be difficult comps in 2015 when we exited 2014 the way we did. Average price for 2014 much higher. Thanks for the sobering view. Stewart glickman analyst at s p capital iq. Thank you. A new partnership with google cloud. Ceo of vmware here to explain when squawk on the street continues. Ep breath in. And. Exhale. Aflac and a gentle wavelike motion. Ahhhahhhhhh. Liberate your spine. Ahhhahhhhhh. Aflac and reach, toes blossoming. Not that great at yoga. Yeah, but when i slipped a disk he paid my claim in just four days. Ahh four days . Yep. See why speed matters, at aflac. Com. Sunday dinners at my house. Its a full day for me, and i love it. But when i started having back pain my sister had to come help. I dont like asking for help. I took tylenol but i had to take six pills to get through the day. So my daughter brought over some aleve. Its just two pills, all day and now, im back aleve. Two pills. 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If you have any sudden decrease or loss in hearing or vision or any symptoms of an allergic reaction stop taking cialis and get medical help right away. Why pause the moment . Ask your doctor about cialis for daily use. For a free 30tablet trial go to cialis. Com [ male announcer ] at northrop grumman, we know in the cyber world, threats are always evolving. At first we were protecting networks. Then, we were protecting the transfer of data. And today its evolved to infrastructure. Finance. And military missions. Were constantly innovating to advance the front line in the cyber battle, wherever it takes us. Thats the value of performance. Northrop grumman. Welcome back to squawk on the street. Watching shares of thethe New York Times times, the stock moving higher better than expected Fourth Quarter earnings and revenues as digital growth offset weak innocence print operation. Balance sheerares up 7 . Down 5 over the past three months. Got news in the cloud space today. John force jon fortt joins us here with vmware. Cloud infrastructure and virtualization Company Vmware announcing collaboration with do toll create enterprise public cloud. Works with hybrid cloud plan and strategy. With the company entering a crowded cloud market whats it going to take for the pair to float to the top . Patrick elsinger ceo of vmware. Pat, tell me strategically, this is nonexclusive. What is think going to allow you to do against the likes amazon microsoft, going for integrated cloud strategy. Does that allow you to work on pricing end, on the marketing end . What edge does it give you . Thanks john. Great to be talking with you again. What this is is googles presence in public cloud and analytics combined with vmwares leadership position in the enterprise space bringing two together allows us deliver the hybrid cloud capability unparalleled in the industry. And result allows us to deliver on this vision that we have laid out of one cloud, any app, any device combined with many other announcements uniquely positions us deliver on the vision. Ive been talking to heavy Enterprise Cloud users and what i keep hearing is amazon has been really good about delivering the types of tools they need to make sure that theyre able to cost optimize amazon keeps dropping prices. Microsoft right there but later to the game in offering those tools. But that theyre so ingrated into amazons system, having tweaked their processes and software and the data center to work with their infrastructure, it would be hard for them to switch. So, what is the Value Proposition that you offer, say, to somebody who has already been on amazon for quite a while and has a high switching cost . How do you get them to switch to you . The important point to realize we are in the early innings of the cloud discussion. Estimates 4 5 of workloads are rung todays public cloud. Now, enterprise customers are saying, how do i execute the next stuff, the harder stuff, things that require my huge investments, 95 of my Enterprise Apps and current data centers and how do i combine those with public cloud . Thats the space where what we are doing in our one cloud any app allows on premise to work uniquely with the off premise, bring those together in a single cloud offer, one cloud any app. Makes sense. Talk to me broader for a moment. Your relationship with emc is well known, some pressure to even further spin off vmware from emc at a time when microsoft and amazon again, are trying to more tightly integrate their offerings into cloud, at a time when youre got oracle trying to push hard into cloud with a more integrated strategy. Is now the time to separate these two companies further or should you come closer together . We believe very much that being bigger and more strategic in the federation approach that weve taken with emc is right answer and were confident that we can Work Together delivering more value to customers and partnership with emc is increasing and expanding and watch this week is further evidence of technologies that we deliver with emc into the marketplace in a powerful way. Does emc need to continue to own as much of vmware as it does for that to work or can you Work Together just as well as more separate companies . We believe that the Federation Model and the business relationship, the investments that emc has in us is the right model. And ive gone on record saying we believe this allows us go faster together, be bigger and more strategic to customers. So were quite comfortable this is right answer and the right structure to do the best job for customers today and into the future. Last question tomorrow is the oneyear anniversary at microsoft. Has he changed the game. A friend and someone who has been well received in the microsoft environment, but we also see them as competitor and one for which many of the new products that weve announced this week announced new flagship product, new hybrid networking storage capabilities, all coming together to deliver on our one cloud any application vision well positioned in the marketplace versus competition and uniquely to deliver great value to our customers. All right. Sounds like happy anniversary, get your guard up pat gelsinger, ceo of vmware. Great to see you. Thank you, jon, for that briefing on hybrid cloud. Got my homework to do. Coming up checking out the market. 200point rally on the Dow Jones Industrial average. Energy at center of the story, a big rebound for crude oil, auto sales, coming in strong. Bullish headlines on europe and greece. Back in two to talk about all of it. Whats that thing . I moved our old Security System out here to see if it could monitor the front yard. Why dont you switch to xfinity home . I get live video monitoring and 24 7 professional monitoring that i can arm and disarm from anywhere. Hear ye the awkward teenage one has arrived dont be old fashioned. Xfinity customers add xfinity home for 29. 95 a month for 12 months. Plus for a limited time, get a Free Security camera call 1800 xfinity or visit comcast. Com xfinityhome. Little more than an hour into trade, some stories were watch, shares of hca, lower despite Quarterly Earnings meet. Hospital operators Profit Guidance below expectations. Different story for aetna. Higher after raising its fullyear outlook, posting better than expected quarterly revenue. Factory orders did fall for a fifth consecutive month, down 3. 4 . But the bulk of auto Sales Numbers are out and pretty good. Phil lebeau has the roundup, gm in particular. When you look at all of the numbers, well throw these up here, all are better than expected wifrtd theth the exception of ford. And even though were going against easy comparisons from january of last year and remember at that time we had horrific weather which kept people out of showrooms, didnt have Consumer Confidence at a high, look at numbers this year. Strong across the board. What stands out . You guessed it weve been talking about it for several months, truck and suv sales they have popped in last six to seven weeks. Gm trucks last month, up 42 . The jeep brand, red hot, up 23 . And we talked about ford coming in a little bit weaker than expected but not a whole lot. Fseries doing well. In fact im on the ford sales Monthly Sales call right now. The fseries average transaction price, last month, up 2100 compared to january of last year, a lot of that is because of the new fseries theyre selling. Highend version of the new aluminum fseries selling so quickly, theyre out of showrooms in eight or nine days on average. That basically means they come off the truck, they do the paperwork, theyre already ordered, theyre out the door. Quickly, want to show you this graphic which shows what auto sales have done on an annual level going back to 2009. The estimate for this year is 2015. Later today, well get Monthly Sales pace for january. Its probably about 16. 6 million. Dont read too much into that. January is the second slowest month of the year in terms of auto sales. People look at it and say, nice to have a decent month but not the end of the world if its not. And again, well get that later on today. Finally, take a look at shares of General Motors. This companys reporting Fourth Quarter earnings tomorrow and you can bet its going to be getting a nice pop on truck and suv sales, transaction prices have been very strong for General Motors. Thats a key focus when earnings come out tomorrow morning. Back to you. This is where americans are using gas savings, perhaps buying more gasguzzling trucks and suvs. Speaking of gas, oil, Broader Markets rallying together now. Wti crude up 3 . The dow was up 20 points now 200 points. Now jackie with more. All of the new reports out of the Big Energy Companies about the plans this year. Thats right. Traders always tell me by the time reports and estimates like this start to come out, its sort of past the point where the hedge fund have started to build long positions you can see that reflected in oil prices today. Wti over 51 brent crude over 56. Latest study out by ihs saying we will see as a result of the cap x cuts and rig count reduxs and layoffs at big Oil Companies, well see probably a monthtomonth reduction in terms of production here in the u. S. In the back half of 2015. Some people expecting to see this potentially later than that. It does take a while, when you turn the spigot off, for production to start to clam up and thats why theres a lag factor there. But interesting, traders looking to the technicals here saying that once this momentum starts to bill to the upside people start to pile on you get the Short Covering and thats why we get jumps higher. This is a productionside story. Nothing has changed in terms of the demand side of this. So if the stock market is rallying because of oil prices there may be something to consider there. Back to you. Thank you for that. Jackie deaneangelis. Is raiddioshack going the way the dodo. Why it may be on its last breath. Your dad just kissed my mom. Turning two worlds into one takes love. Helping protect that world takes state farm. E financial noise financial noise financial noise financial noise energy of course up for the past four days. That has not meant good thing for the airline sector. Dom chu . Higher Oil Prices Mean lower airlines, all of them big ones to the downside today. United, american delta, southwest, all hit hard. And if oil has bottomed like some claim the sector could be in for a rougher ride given its outperformance last year. Back over to you. Now over to chicago the cme group. Rick santelli with the santelli exchange. Good morning, rick. Good morning, sara. And good morning to our guest this tuesday, andy brenner. Thanks for taking time. Rick always a pleasure. Boy, huge moves around the globe, a lot of them in fixed income. Threeyear greek, 250 basis points lower in yield, 5s, 200, 10s, 100. Jgbs yield using your words burke theyre mine as well underbund yields. See the Euro Currency getting traction, both against the dollar and the yen. So whats going on andy . Lets start out with greece. Well what happened is the obvious. Everyone kept slamming back greece as they were talking about trying to reduce their debt and now talking about trying to do gamemanship. And people are saying maybe the ecb and the eu can come with an agreement. But when you look at greek yields, theyre astounding. 17 , 18 for three years 15 , 16 16 for five years. Compared to spanish debt well under 1 . I mean i think risk versus reward, youre getting paid to own greece. Basically you nailed it. You know its the hotel california, maybe you can check out but never leave with regard to the eurozone and the reason is clear because it will poison the barrel with all of the other economies you pointed out whose yields are lower than they should be. What exactly are we trading . Guests on cnbc andy say, theres great opportunity in europe. Theyre right. But its not opportunity to get a Balance Sheeting look at fundamentals. You know heres what greece said tax the wealthier tax evaders, have growth warrants on the paper and perpetual bond coupons. To me, i want to see specifics. What are we really trading here. Ricky, to make it simple treading on the ecb put, thats what you have, pure and simple. Where you have russia which is all by themselves argentina, all by themselves greece has the ecb and the eu to fall back on. And theyre not going to let them leave because theyre worse off if they do. Now if this is all about extend and pretend, which i personally think it is ultimately, think cal pers, the s p issues going on today with the rating agency. We get all of the investors in trading on the manipulation of Central Banks and how transparent, where they think the next move in the chess game is going but at some point, when theyre invested in the markets, what if the fundamentals arent there, extend and pretend can only go on so long. You know rick were seeing crazy things in the worm. Today you had bunds under jgbs tenyear avenue we never seen that. Danish tenyears 15 basis points. Swiss continue years negative levels. This is central bank manipulation. When it does stop its going to dramatically cause losses and everyone that has played this game. Andy thank you very much. All good answers. Back to you. Thank you. Rick santelli. When we come back, who should buy radioshack. Who might be making the move. Auto sales coming in all morning long. Phil lebeau has toyota now. Phil . The trend continues. Toyota doing better than expected last month. Sales increasing 15. 6 , just a little bit better than the edmonds. Com estimate of increase of 14. 8 . So if youre keeping track at home basically looking at all of the major automakers reporting january auto sales increasing at least 13 or 14 . Again, almost all of them coming in better than expected. Phil thank you. Meantime New York Stock Exchange suspending trading of radioshack moving to delist the stock. Should mention, at well a penny stock at stock. Market cap under 30 million. Morgan brennan joins us with details from a radio shack in fort lee. Hey, morgan. Hey carl, thats right, the nyse has started the process of delisting because the company does not intend to submit a plan to regain compliance with the exchanges listing requirements. The exchange multiple sometimes putting out warning that radio shack needed to get its market capitalization above 50 million on average for 30 consecutive trading days. That hasnt happened. As you mentioned as of the close of yesterday the last day of trading for this stock, market cap 24 million, and it is a penny stock. Shares have fallen more than 90 in the past 12 months alone. The distressed retailer has been hemorrhageing money as well. The company post losses in each of the past 11 quarters and just recently, last week getting a regulatory filing that radio shack received a second notice of default on its credit agreement, fueling expectations that the retailer could file bankruptcy any day now. Hedge Fund Standard general which is the largest shareholder for radio shack stock expected to become the stocking horse bidder in a Court Supervised auction of radio shacks assets and those include 4300 stores that are managed by 27,000 associates as many as half of those locations could close. Were getting reports that there are other potential buyers starting to circle theses assets, sprint and amazon reportedly looking to absorb some of the locations. Back to you. All right. Morgan. The ones behind you doesnt look are open. Is it open . It is. It just opened. As you can also see behind me weve got clearance blowout, 20 to 50 off. No confirmation from the store on whether that has to do with a potential closing. The sale signs no the looking good for the company. Sign of the trouble. Thank you, morgan. Stay warm out there outside of radio shack. Reports this morning after radio shack does file for bankruptcy the struggling retailer may sell some stores to sprint or amazon. Com. Joining us sun trust robinsons managing director bob peck who put out a nice report of all the reasons you think amazon should do this. The great disrupter of brick and mortar businesses in retail. Why should it be getting in . We wrote a piece back in september. We went over a couple reasons why we thought amazon would be interested in the assets taking over the leases to some of these stores. One, is sort of obvious. See them demo their own product also fire phone or kindles or fire tv or show the prime streaming services. But the other and big key part aint it at the end of the day amazon is a logistics company. Having the physical presences could help them with distribution, same day delivery, pushing further and further into local commerce. I cant help but think of terry lundgrens comments on cnbc, ceo of macys saying amds will be getting into brick and mortar. You have to have a two pronged strategy. Do you see it keeping the radio shack name or rebranding it amazon and making it a distribution center. I would guess they would rebrand it and make it a distribution center. Think of the concept of them having to stock thep top 100 items in the store where you could walk in in the in the morning pick out what you want instead of lugging it home same day ship it to your house, when you get home its waiting for you. The whole logistics and same day delivery is a big part of this. How much whats sustainable in terms of physical presence . How many locations . We dont know. We speculate in our note at least a couple hundred stores maybe thousand or so. Look them to count around urban areas to really sort of augment whether it be their food business they have amazon fresh, their amazon local initiatives they have as well and think about the lift to the ecosystem where they could supply things like snow shovels in the northeast maybe suntan lotion in the south, customize it to the local geography. The head of whole foods was interviewed in businessweek last week and he said these kinds of things google express, amazon fresh are going to be their waterloo. Was that overstateing it . I dont think so. Theyre doing it prudently and coming in at low cost not buying the company overall. They will take over some of their leases doing it prudently. Youve seen them test and see where the returns have been particularly on the fresh product, doing local groceries, market by market see how it goes but it would make a lot of sense as they push towards the same day delivery concept to have it at least in the urban areas. What would it mean for investors so impressed by amazon as latest quarter, the profit margins, the profits which they hadnt seen in a while . Does this help amazon with the cost issue . We still think theres a lot of cost in front of amazon when you think about their growth internationally and the density of their capex they have in the u. S. Versus the opportunities internationally, so they said theyre going to continue to spend against the large tams. Near term stuff in this initiative we think they will be prudent and they always show you proof of when they pull back what the margins can do like we saw last quarter. They will keep proof of concept. Finally, bob, while we have you, hope you wont mind a question on twitter. Sure. Outspoken as youve been about costolos tenure your question today is whether or not investors are getting into a, quote, facebook moment. Yes. Regarding twitter. What does that mean . Go back six quarters or so most investors were negatively predisposed to facebook. Stock sat at about 20 bucks and most investors thought they would never monetize mobile. Too small, no room for adds and right now theres a big bearish isntment on twitter. Our point has been should you see the momentum change like it happened to facebook the stock could run. You need a catalyst. Facebooks case it had a great 2 q in 13 and could monetize mobile. In this case what we pointed to are the Business Development deals, the automatic maus. If you see that start to hit not only impact on the top line monetization but maus inflecting as well. Well see what happens with earnings. Bob peck thanks for joining us. To jon fortt with a look at whats coming up next on squawk alley. Well look into why google and uber seem to be getting into each others faces and maybe a bad way. Sap founder hosele plotner to talk s 4 and 3d printing stocks blowing up in a bad way. Well take a look at why coming up on squawk alley. Your moms got your back. Your friends have your back. Your dogs definitely got your back. But whos got your back when you need legal help . We do. Were legalzoom, and over the last 10 years, weve helped millions of people protect their families and run their businesses. We have the ri t hasso plattner, 3d 3d, hasso hasso plattner, 3d 3d, hasso. Three days to go until the big jobs report. That means another opportunity for you to nail the number. Tweet us your predictions for januarys nonfarm payrolls. The handle squawkstreet use the nail the number. The lucky winner will receive a useful prize perfect for winter. Ear muffs. And they are autographed by the entire squawk on the street gang. The estimate for jobs is 235. You have one minute before the jobs report. Well send it over to you, carl. Thank you so much. Good morning. It is 8 00 at uber headquarters in san francisco, california, 11 00 a. M. Here on wall street. Squawk alley is live. And welcome to squawk alley for you tuesday morning. Joining us this morning special guest guy kau sack question former chief evan ge list. Great to see you again. Thank you. Jon and kayla at post