Oil shock ripple effects. The impact of equities and currencies and a closer look at stocks that are keeping the dow from hitting 18,000. Is it time to turn on the taps and lift the u. S. Export ban on crude . Well talk to a top dog on Global Commerce. And a shocking reversal on two Insider Trading convictions. The ruling that could change the rules for wall street as the second hour of squawk box begins right now. Welcome back to squawk box on cnbc. Im joe kernen along with becky quick. Andrew ross sorkin is at the dealbook conference. Hell join us in the next hour and well hear from jack lew speaking at the conference. Among the other power players attending, gm ceo mary barra, actress and entrepreneur jessica alba, a. Mex ceo. Well bring you those interviewing throughout the day. Acquired a 5. 1 stake in staples. The hedge fund has also boosted its holdings in office depot. Its move to call for a merger of these two companies. Economic data on the calendar today will get claims. The closely watched claims numbers expected to tick up to 300,000 from 297,000 the previous week. But obviously with big jobs report from last friday, that will be a number watching very closely. And earnings out just a short time ago from lululemon. Quarterly profit of 42 cents a share Beat Estimates by 4 cents. But lulu did see a surge in online sales. That is helping the stock this morning. Take a look at this. Peter thiel giving a speech at uc berkeley yesterday. You wont believe what happened next. Were going to show you the video in a couple of minutes. But he was heckled. Was it him being i guess it was. Well, they look at him as a sign of the man. Nsa or something. Although it was interesting to see the reaction from the people in the audience too. Well show you that in a moment. Berkeley wouldnt who was it they wouldnt let speak there . Are you thinking of rutgers with Condoleezza Rice . No, no, no, that you can understand because condi is to the right at least. But berkeley wouldnt let in somebody who is a total lefty. That was everything they believe in but not quite enough. Was it just this last year . It was some College President that well do it a little later. It was a College President that i think used they thought too much force to disperse i dont know. Well look it up. In the mentime, the dow did come close to hitting 18,000 this week. But the markets got cold feet. Here is our statistics guy dom chu to take us inside this weeks hiccup. So becky, joe, when it comes down to it, we got within nine points of hitting that market at least psychologically. But if you look at whats happened over the past week, we only lost about 2 . Its a lot in terms of a move in one week, but still were just about 2. 5 , 3 away from record highs in the industrial. No sense of panic yet. There are a handful of stocks dragging on the dow. Weve lost about 426 points since our record close last friday. And among the stocks having the most weight, chevron has taken about 39 points away. Out of the 426 points we lost since those record closes, 39 of them have been at chevron. Another one thats huge has been mcdonalds. Also a decently weighted stock in the index. Of course those Sales Numbers didnt help matters much here for mcdonalds. Theyve taken up 41 points of that 426 from the dow just since its record close. And the single worst stock in terms of point drag on the dow, we shaved nearly 50 points off that drop that we had. 50 of it came from boeing. So these stocks overall have had a huge impact. And you cant forget whats happening with oil. You cant forget whats happening you look since the highs weve seen. Just since july, weve seen a 22 drop in chevron. So bear market territory for chevron. And exxonmobil, a huge component, third biggest stock in the s p 500, that stocks down about 15 in that time since the end of january. Or the end of july, rather. So if you look at oil and gas, chevron and exxon, they are big drags. But it is one stock in particular, boeing, thats having the most point impact in terms of the downside. Over to you. Thank you very much. Bill maher. Thats who. He was the Commencement Speaker anyway even though the students voted not to have him. But then there was another one that was supposed to speak, a College Administrator they didnt want to come because he disseminated today on capitol hill theres going to be a hearing on whether to remove the export ban on crude. Our economy is apparently getting stronger. How big a role does Americas New Energy dominance play when it comes to trade. Joining us is u. S. Trade representative e. Michael froman. Id like to get your take, sir, on just the controversy that we have. Were tying this recent selloff in the stock market to Lower Oil Prices. Can you just help us . Is it good or bad when this happens to the world . Well, joe, first of all theres been a dramatic expense in oil and gas thanks to the Overall Energy strategy. And thats good for the United States, good for the world. Its helped draw more investment into the United States together with the low Energy Prices and some of the trade agreements that makes the u. S. Very attractive as a production platform of choice. A place where Companies Want to put their factories both to serve the u. S. Market but also to export all over the world. You look in the past ten years and its like so many things. And that is that sometimes we were not theyre not the right kind of exports or the right kind of imports we have with some people saying nafta was a huge success. Other people saying it was a huge detriment to the country. Whats your stand on what we should do from here for the last two years of the president S Administration . Could we get these trade deals done . Is he ready to go to bat for them and are you as well . Absolutely. Weve got a very robust trade agenda. And its really focused on three things. One is creating jobs here in the United States by opening markets abroad. Our markets are already quite open. But we face barriers abroad, higher tariffs and others. So we can export more manufactured products, services and agriculture. Secondly were focused on setting the rules of the road. And raising labor and environmental standards. Making sure theres strong protection of Property Rights but also access to innovation. Making sure by doing that were leveling the Playing Field for American Workers and firms and helping our competitiveness. And thirdly its important to american leadership. Because were not the only parties out there. There are other countries whether its china or others negotiating trade agreements, carving up markets and setting different types of rules. We want to make sure the Global Trading system reflects our interests and our values and thats part of what our overall trade agenda is about. One of the things you pointed out to our people is the hope for some bipartisan momentum after the midterms. Now i look at the spending bill and it looked like it was going to happen. Looks like we could snatch defeat again from the jaws of victory from this. Each party can always find something. But on trade, you even have ted cruz and the tea party agreeing basically with the president on this. Can we mess this up somehow . Well, trade has always been an area thats benefitted from and required bipartisan cooperation. And certainly weve been comforted by the messages weve heard from Republican Leadership including as you said senator cruz and senator paul as well as of course senator mcconnell and Speaker Boehner that this is an area that they are looking forward to working with the president and the executive on so we can create jobs here in the United States and take a positive step forward. Can you weigh in quickly on i mean, you would like a lot more trade and you would like us to be a country that attracts capital. Do you think our Corporate Tax rate is too high . As someone that is watching trade and in charge of increasing it is that something you would we should do . Its outside my lane, per se, but certainly the president has made clear that tax reform should be on the agenda. And wants to work with republicans and democrats to see if theres a path forward for that. He was at the business round table last week. He spoke about tax reform and trade and immigration. These are all positive steps about infrastructure. These are all positive things we can do together to build on the recovery weve seen and get it going stronger in the future. You dont want them to trade their domicile for where they pay taxes. Thats in the the kind of trade we want. I know we can stop it by stopping the symptom, but wouldnt it be better to cure the reason they want to move in the first place . Well, we certainly want to make sure were doing everything we can including through these trade agreements to make it attractive, to make things, build things, grow things in the United States and export them from here and around the world. That helps create good jobs in the u. S. , creates opportunity for American Workers and farmers and small, medium sized businesses all around the country. Export related jobs pay 13 to 18 more on average than nonexport related jobs. Opening markets create more exports, create more highpaying jobs dealing with wage issues and inequality issues. Michael, weve had a series this week focusing on the rust belt. And weve talked about the revival there. Wonder how strong you think it is and what it might need to help that recovery along the way. Well, were seeing some very, very good signs of that revival. Companies bringing back manufacturing to the u. S. , more investment coming into the u. S. The u. S. Is now once again the number one destination for foreign investment. Wed like to make sure we do Everything Possible to promote that. When were done with the transpacific partnership, two of our major trade initiatives, well have free trade with more than 2 3 of the global economy. And when you add the skilled workforce, that makes the u. S. The production platform of choice. It makes the u. S. The place where companies from all over the world want to build things both to serve this market and to export all over the world. And that will create good jobs here. Can you im pretty savvy in you can call me anything you like. Can you help becky with the exporting some hydrocarbon. Look, i follow the Charlie Munger school of thought. Lets use up all theirs and well keep all of ours. Well, as i said, were producing a lot more oil and gas. Its good for our economy and its good for the world. It creates alternative sources or allows oil or gas that comes into the United States to serve other markets as well. I will admit ive been swayed over the geopolitical the last several years. Thats right. And theres a lot we look at our trade agreements. Obviously they first and foremost have to be justified on economic rounds. What they do to promote jobs here in the United States. But theyre also important geopolitical or geostrategic rationales for them as well. At a time theres a lot of uncertainty on the periphery of europe, its an important reminder of the relationship. Youll have to come to visit us on set when youre here. Id be happy to do that. Thats probably the crummiest ambassadorship. What about france or italy or monte carlo or something . As my son says, what kind of ambassador am i . I dont have a country to go to. Youre representing our interests. Youre up for ambassadorship, youre like, yes, what . No, its great. And thanks for coming on. Good to be with you. When we come back this morning, the oil trading block telling you what to expect. Then a shocking reversal on two Insider Trading convictions. It could mean big changes for wall street in the justice department. And jack lew live from the dealbook conference in new york. First, though, the Holiday Shipping wars are heating up. Morgan brennan joins up from the port in louisville, kentucky. Morgan . Hey, becky. U. P. S. Expects to ship 885 million packages this holiday season. Well, we have the inside look on your gifts after the break. Ial e financial noise financial noise financial noise will thank you. , sir . Ordering chinese food is a very predictable experience. I order b14. I get b14. No surprises. Buying business internet, on the other hand, can be a roller coaster White Knuckle thrill ride. Youre promised one speed. But do you consistently get it . You do with comcast business. And often even more. Its reliable. Just like kung pao fish. Thank you, ping. Reliably fast internet starts at 89. 95 a month. Comcast business. Built for business. U. P. S. Is hoping not to repeat last years holiday rush when more than a million packages didnt make it under the tree by christmas. Morgan brennan tells us about the investment and planning going into this holiday season. Shes at the u. P. S. Hub in louisville, kentucky. Good morning again, morgan. Hey, becky. Its quiet right now. Were between shifts. But in the next couple hours this place is going to be hopping. This is u. P. S. s global sorting hub. The average daily volume, 1. 6 million packages. But this time of year, that can triple with nearly 7,000 packages being processed per second here proving across 155 miles of conveyer belts in a facility 90 football fields big. Now, impressive numbers, but last year this wasnt enough to help prevent the delivery debacle we saw at christmas when packages not all packages made it in time for christmas. Thats why u. P. S. Has plowed 665 million in capital and operational expenditures into their network this year. Looking at some of those investments, automation upgrades at this and other facilities, detailed forecasting tools, more gps services. And room for more customer trailers to increase capacity. Thats on top of more workers, more operating days, and temporary sorting hubs. Hows it working so far . Ship matrix says the accuracy rate of ontime deliveries for u. P. S. And fedex increased the week of cyber monday versus last year. And thats a really good early indicator that all these investments are paying off. But keep in mind u. P. S. Is expecting another late surge in Online Shopping this year as projecting its busiest day of the season will be december 22nd and weather can affect a lot in that time period. So were going to be talking more about whether and u. P. S. I was one of those people that ordered things that didnt make it in time last holiday season. While its frustrating, you can also understand i kind of blamed myself for ordering too late. I blamed myself for allowing things like the weather to get in the way. If you can control the weather, then you can win, right . Certainly. And, you know, Mother Nature is no one can control Mother Nature, but its interesting what theyre doing here to bypass some of those issues and some of the potential snowstorms and ice that can come in and really change how packages get delivered. You know, for consumers out there, dont wait until the last minute to order. Yes. That is the best lesson of all. I say that for myself as well. I know. I ordered heavy all around black friday. Thats when i figured i should get most of my stuff in to get shipped. Anyway, thank you. We will see you later this morning. All right. Coming up, the video we promised you early of peter thiels speech at uc berkeley interrupted. Thats coming up after a quick break. Take a deeeeep 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. Many americans who have prescriptions fail to stay on them. Thats why we created programs which encourage people to take their medications regularly. So join us as we raise a glass to everyone who remembered today. Bottoms up, america. See you tomorrow. Same time. Another innovation from cvs health. Because health is everything. For that moment, where right place meets right time. And when i find it i go for it. announcer at scottrade, we share your passion for trading. Thats why we give you the edge, with innovative charting and trading features, plus powerful mobile apps so youre always connected, wherever you are. Because at scottrade, our passion is to power yours. The speech weve been talking about that peter thiel gave at uc berkeley was interrupted by protesters. About 20 minutes into the event which was hosted by the berkeley forum, protesters started banging on the doors. Thiel continued with the q a. Then the doors crashed open and protesters took over the stage. They held signs about ferguson and the nsa. They chanted no nsa, no police state. And black lives matter. Then the crowd booed the protesters and countered with their own chant peter thiel matters. They were also chanting go home, go home. There was a long back and forth. This comes after many nights of protests that theyve seen in berkeley where things have gotten a little out of control at times. Some windows broken. But this one actually spilled into the conference hall. Peter thiel is a lightning rod for a lot of different groups. Hard core libertarian, openly gay, and he will Donate Campaign contributions to a candidate based on his libertarian views even if some of those counter to the social views. Hes fascinating, great genius. Obviously a big lord of the rings fan. The protection, right . No. Oh. Its like a crystal looks like a big bowling ball. Thats where you see the eye right . Saron can see you and will see into your soul. And find out where you are. Dont look into it. Merriam almost didnt come back. Or pippen. One of the