From other spending that you would be doing another other retailers. As for the broader markets, Oil Continues to be the big driver. Wti crude rallying more than 4 yesterday. That was its best onesession gain since august 2012. But prices are still down about 36 from the high set earlier this year in late june. Take a look at oil prices this morning, youll see right now, down by about 1. 25 for wti. Thats a decline 0686 cents for 68. 14. Andrew, over to you. Thank you, becky. Lets take a look at some stocks to watch this morning. Stocks already on the move, japans asuka pharmaceuticals, buying pharma for 17 a share in cash for about 3. 5 billion. The price tag is roughly 13 premium to yesterdays closing price. Also, cypress Semi Conductor is buying flash memory productmaker expansion in an allstock deal worth about 1. 6 billion. The combined company will keep the cypress name. Each shareholder will get of that entity about 50 of the new company. A mixed quarter for rvmaker Ford Industries beating the street, but earnings falling short. Motorized rv sales rising 25 from the same quarter a year ago. Well talk to the ceo of winnebago at 8 40 eastern time. We took a squawk box trip on a winnebago. But we shall not digress. Shares of apple have been soaring until yesterday. The ek the giants lost nearly 23 billion in stock value in one session. The cause comes with some analysts and investors which started speculating that apple could become the First Company to reach a 1 trillion valuation. It was one of i dont know if anybody else ever hit 7 billion. Tim cook has provided over a doubling in the market caps. And apple heads to trial today. The company is defending itself against allegations that it abused a monopoly position in the Digital Music player markets. The Class Action Lawsuit was brought by a group of people who bought ipods between 2006 and 2009. They argue that a Software Update made it so itunes music could only be played on ipods, which unfairly blocked competing makers. Short deposition experts of videotaped before steve jobs died. Peter says monopoly is the way to go. I dont understand. If they build something that is its really good and it is a market monopoly in this instance identify read the emails, but nonetheless, theyre making a great business. But buying the tunes you can only play them on your ipod or your yeah. Thats the business. If youre going to buy it on itunes, you can only play it on your ipod. Its a closed system. Thats what it always was. Theres a point where a closed system is good and then theres the point that it irritates people. Theyre doing it again with some of the our Big Tech Companies. If they can make a decent you know, develop the technology. Develop some technology and then you can do it. Yeah. Its never going to happen, though, over there. Lets talk about takata. It is reportedly preparing to comply with the u. S. Order to sxan a recall of air bags nationwide. Thats according to japans uk news service. U. S. Regulators ordered the move last week. They faced a deadline of today to comply. Ta cat ta supplies about onefifth of the worlds air bags. The ntsb says design flaws led to a parked boeing 787 last year. Investigators say the battery should not have been certified by the faa. Parked is the operative word there. Deal with that. Get off the plane. Leave. And you can do it. Youre on the ground. Exactly. Want to take a look at the markets this morning. Yesterday we did see a bit of a dip. This morning, though, futures are indicated higher. Dow futures up about 28 points, nasdaq up by about 8. 5 points. In europe, youll see at this point mixed markets. Germany, slightly weaker. France slightly stronger. The ftse up about 1 in london. In asia overnight, gains across the board. The hang seng was up by 1. 25 . The nikkei was up by just under 0. 5 . Oil prices, as we mentioned, are weaker this morning. Theyre down by about 1. 5 . Thats a decline of just over 1 to 67. 97. Wti falling back below 68 just in the last few minutes. Take a look at whats been happening with the tenyear note. At this point, it will be sitting just under 2. 25 at 2. 227. . Joe, this is a question we still have on that. Where is it headed next . Where . Im surprised to see it that low. The oil or the euro . Well, i can say the yield on the tenyear and the tenyear. I was shocked yesterday when i got back and it was below 2. 2 . Yeah. We have low inflation and a rebournding growth in this country. Hopefully that will engender growth abroad. Maybe multiples can stay where they are. But good news is good news, right . Good news is good news. It used to be we needed oil to rebound because we were worried about global fears. Now were convinced that its supply. We even sent Brian Sullivan to the bakken where it was minus 15 degrees. You know, he had a hat on and i said your most distinguishing feature is that. He took it off and he got, youre right, i love my ears. Hes 66, you know . Tell him you dont like his ears. Yeah, go ahead. Lets take a look at the dollar and check out where the euro stands today. Right now, sitting at 1. 2438. The dollar is up across the board. I wont be concerned until its like 75 cents. Ready to go to europe. Take a look at whats been happening with the dollar yen, sitting right now at 118. Gold prices, down by almost 20 this morning, sitting right at 1,198. 70 an ounce. The nasdaq and the russell 2000 suffering their biggest decline since mid october. Joining us right now with more on the markets is steven freedman, head of Investment Strategy at ubs. And on the economy, jim oh skull van, the chief economist at High Frequency economics. When we say were looking at the worst drops for some of these indexes in a while, were looking at the declines. What happens next . I figure we had this sharp rebound since mid october. Now you really have to earn your way higher. And i really mean earn in the sense that we have to have fundamentals, Earnings Growth fundamentals delivered. Our view is that you will see that from the context of growth, relatively positive on the macro and on the earnings side. But its not the type of 10 rally that you saw in october and november. Do you think stocks have gotten ahead of themselves at this point . Apart from the daytoday volatility, i think theres still room for stocks to grind higher over the next year. But i think youre talking about gains on the order of Earnings Growth of something on the order of 7 to 8 from this point on. So lets talk a little bit about that, jim. What were facing with the economy right now, what were facing with oil prices, is this a goldie locks economy . Certainly on the growth side, the numbers continue to look pretty good. Theres been a step up in growth over the past couple of quarters. We generally have a the trend in gdp. Lower oil prices are only going to help that. The numbers on growth continue to look good. On the inflation side, the headline numbers are going to be very, very weak because of the drop in gasoline. Meanwhile, the core numbers are pretty tame. For now, yes, the basic story is solid growth and inflation. What gives with the numbers we got from the nrf about the black friday Holiday Shopping and now this morning with the cyber monday retail sales . If were looking at everything in the consumers favor, why are they giving us numbers that sound like things are falling off a cliff . Certainly the National Retail federation number is a small survey taken once a year with a Different Group of people. Theres no consistency in this survey at all. So, in other words, you think this survey just stinks . I think thats the bottom line. There is no way certainly for the Holiday Shopping season as a whole that were going to get an outright decline. Income growth, wage income up 4. 5 year over year. Conference is at a recovery high. The back drop in Consumer Spending is clearly pointing to a gain in holiday sales this year. I would argue at least 4 . I was surprised by these ipm numbers. Thats taking a look at online sales. Up 8 versus up 20 last year. Even up 8 is a decent number. Those numbers, as they get bigger, theyll get harder to get bigger numbers. If you look at the shopping season as a whole at the end of the day and the retail Sales Numbers have been growing about 4 year over year, its not a perfect indicator, either. But this morning, on tuesday morning, of course, we get the weekly sales source indexes, the red book, and i would be very surprised if they were negative year over year. We had a retail analyst who pointed out all of these ads from the car company, get you to spend money on a great car, it may take away from the money that they would otherwise be spending at the malls. I think these things go up and down together. When consumers are feeling better, you see growth in auto sales and auto sales together. Theyre positively correlated. Today, were going to get probably a decent auto sales number for november. So in general, Consumer Spending may not be trending, but theres no way its declining. Why were the dow transports down . Was that just a knee jerk reaction to Higher Oil Prices yesterday . By higher, of course, i mean relatively speaking . I think you have a bit of that correlation. Its clearly one of the inputs in that product process. I dont think that tells you anything about the longterm prospects. But on the day, thats the type of impact you can see. You like the small cap stocks a little better than the big cap stocks. Why is that . Its based on their lower exposure to foreign demand. Its a more pure play on the u. S. Expansion and the u. S. Is the leader in terms of growth dynamics in our view. You also have less of the pressure coming from the stronger dollar if youre investing in small cap stocks. Returning expectations can be higher than for the large cap complex. What else do you like . Generally speaking, we like the post cyclical parts of the market. Cap ex plays in technology and industrials. Talking about the consumer, i think were pretty much on the same page in terms of expecting that the Consumer Behavior will start catching up with the fundamentals, which are good in terms of income growth, in terms of the labor market condition. So we do think Consumer Discretionary is one place to look at right now. Okay. Steve, jim, thank you both for coming in today. And we have a troubling story for you today in Corporate America. The fbi is now warning businesses that hackers have used Malicious Software to launch a destructive cyber attack in the United States. This coming after a big breach at Sony Pictures just last week. Its notable because this would be the first major attack wave against a firm on u. S. Soil. Before now, attacks have been launched in asia and the middle east. Whats happening here is the virus its not really a virus. The attack effectively is aimed at destroying the disk drives. So effectively, it goes in at the root of the disk drive and overwrites everything. And you wont be getting it back after that . You may not be getting it back. So, if you get into a bank or a place where there are records many people dont present stuff any more. I do. If things like this actually happen in a meaningful way, it becomes a big, big, big problem, so this is news to watch. Anyway, in the meantime and when we come back, a showdown setting up in washington. We are dag away from another possible shutdown. If lawmakers cant come to an agreement on spending bills. We have john harwood to talk about it next. Dont miss squawk box tomorrow we will be there in d. C. With a huge lineup of ceos from the business round table. Among the highlights, exxon mobil, caterpillar, blackstone, blackrock and honey well. It all starts at 6 00 a. M. Eastern time. Youre looking at the tree which will be lighted tomorrow. Check that out then. Welcome back to squawk box, everybody. Steve carson joins us from the weather channel. He has todays national forecast. Im wondering what we should expect tomorrow when we do have that tree lighting. You know what . I think were in good shape. By the way, i didnt realize we were on yet. I thought i was listening to the music in my break for entertainment. Dancing to yourself, right . It was very cheery. Today, a little messy in the northeast and the midatlantic. Here is a live look at the radar. Showing a little bit of snow. Most of the snow is staying to the west of 95. So its a cold rain in d. C. Philadelphia, sitting at 39. Doesnt look like a big deal. But theres not a lot of moisture with this system. There are temperature profiles that give you a little freezing rain, maybe a little sleet through the early afternoon. All of that will shift in through parts of northeastern pennsylvania and upstate new york by later on tonight. It will be a mess in the mountains of new england and for the most part, snow and wintry precipitation. In through massachusetts, getting into most of new york state, at least your chance for sleet, a little bit of snow. Its cold rain down in portland. These are places that, for the most part, enjoy this kind of thing. Good news, not only is tomorrow looking better, but overall, our pattern is changing here across the entire United States. November is a very cold month. Pretty much everyone in central california. Look at where the cold air mass is. Up here in the United States, down here, we go through time, this cold air kind of gets pushed, suppressed up into canada. And our mid range signals here saturday, sunday, look really, really warm. So most of the country looking to stay warmer than average in the next six days and then even out to 10 days, maybe out to 5. So a lot of people who trade natural gas looking at that mid range, it looks warm here coming out on. The only thing that may be cold at all may be northern new england. This is going to be a stark contrast for what we saw through most of november. There are no big storms to go along with that, either. In between that, there it is, that warm flow through some of the eastern seaboard. Guys, every once in a while, i like to give smu good news. If you dont like the snow and the cold, i think youll enjoy the pattern change were seeing as we head into december. Thank you, keith. This story makes my blood boil, joe. Jean company 23 me is launching in the uk today after a regulatory hurdle here in the United States. The company, backed by google, makes a controversial dna kit that lets you see if youre at risk for certain disease. This company was in the u. S. I took this test. The fda was worried about false positives or false negative results and people then going and doing things about it. So they thought they would tell you you might have a disease and then you would go off and make all the wrong decisions. In the uk, they said you can see this stuff, you can make decisions on it, you can understand what it is and know that then you should see a doctor and get secretary opinions and third opinions, but at least theyre allowing you to see the stuff. And i think thats a better its bad when across the ocean theyre less nanny state than because we think they have exceeded our nanny state aspirations over there. But at times, they havent. I do see i dont know which id rather have, a false nech or a false positive. I think a false positive. Being told you have to and finding out you dont . Except then you can go on and having something done that wasnt necessary to do that messes up. Its better than thinking hey, im clear, everything is fine and just ignoring it. Theyre both something to by very concerned about. The thing that struck me recently, the New York Times piece on the women that had pollups that looked to be noncancerous and they did it for years after it was clear that you were basically stirring things up. There are physicals that executive ceos take that last days. They find so much sometimes that they go in and you know, if you had left it alone, probably nothing would have ever happened. And instead, you you should be allowed to do the physical, though. Yeah, but you dont you know, this is not a doctor doing these tests. Its very Sophisticated Technology were using here. For a Public Company thats not regulated to tell you the specifications of your geno type is not something everyone should be careful of. Not everyone is going to be as cautious as you and get a secondary opinion. Ive seen it, you have what you think this percent is and then it makes you although, i dont think ive got it down here. Ive never looked up this information. I looked. Start slow and find out who your ancestors are and by the way, it will do that. It will create a family tree for you. Thats amazing. But thats the other thing. I dont have time for that, either either. The technology is new and a lot of times, i can just tell you, that looking at the geno type and then the phenotype, one is your genes and the other is how its expressed when it combines with the government. Its not a Straight Line to i have a predisposition for this so im going to get it or i dont have a predisposition to this so im not going to get it. So the information might not be that great. And i worry that people would misuse it, too. Im going to have to go with the nanny state on this one. Good for you. Im sorry. Now to washington where there is a man who there is a man who has never met a nanny state he doesnt like. Anyway, another threat of a shutdown within days, john harwood says. I dont believe that, john. I think at this point, you know, president obama is a master chess player and by doing the immigration as he did it, hes just like saying, watch these idiot republicans threaten another showdown. Im going to take back the public sentiment that they gained in this most recent election by boxing them in another corner where they threaten a showdown. Joe, i would respond to that question in a moment. But before i do that, i have a vision. You have a dream . That weeklong physical, joe kernen with ca