Territory this morning. U. K. And ireland coming back to open for trading after boxing day holiday and you can see what thats doing for the markets here. We are up about 9 points in the futures market for the s p. 83 for the dow and 74 for the nasdaq. Europe which i just mentioned, u. K. And ireland back online today. We are seeing the biggest gains though out of germany which is up 1. 5 . France is up 1. 3 . Italy is also up 1. 3 and the ftse in the u. K. Is up fractionally. Asia which had been down sharply in its monday trade rebounded for its tuesday trade. Hong kong is up. 3 and shanghai weaker over the weekend. That market is up close to 1 . There is some potential talk in the market about whether the pboc could find new ways to add stimulus to the market but of course anything at this point is unfounded but that is helping put a bit under the stock this morning, joe. And we didnt close anywhere near the lows yesterday and now with europe up maybe well have a good session here but beyond stocks, oil is rebounding a little after a horrific day yesterday. But not much. Talk about oil in a moment the ten year has been well above 220 for a little while. 224. But its in the middle of the trading range for the last six months or so. Not a whole lot of action. Its a week where, you know, leah is down in st. Barts checking out shoes and stuff. I dont know if you is a that. I missed that. Its in the post. And your story is in the post. Your hooker story, stripper story. Its not my story but yes. I was very excited about the story. Ive never seen anyone more excited about a story. Im not sure if you were glad they were getting just fascinated by a juicy story. And i should tell you the author is going to be here tomorrow. Really . Do you know this person . Yes. Also i think she spent a full year. She spent a full year. Thats interesting i guess. They call it in the post. A lot of adjectives. The post tends to do that. Yeah. And the women were like they enjoyed. You do enjoy this story. A lot of them are married and they thought these guys are out here not really respecting us very much. But thats their line of work i think but then they were saying were going to show these guys the meaning of disrespect. And they did. And you still say it was millions. In this case 130. 130,000 on one card but they were doing this repeatedly over and over again. 50,000 here. Guy that lost his mortgage here. I mean it was just like that. You more details. Jessica will be here to give us the full, full story. I mean, if you really want to do this story right why dont we get you there. I dont go out in the field. No. You dont want to do the show on location. Maybe i can get it but could you ask her . I can message her. Though i think maybe one may be jammed at this point. Waiting they have been prosecuted. Theres been a trial and everything. I dont know about the trial. But awaiting trial. Well go through the details with her tomorrow. My little tease. Yes. We got that going for us. Lets tell you what else we have going for us which is on todays agenda. Two key economic reports. 9 00 eastern time we have the home prices in october. In the last reading september home prices rose at the fastest pace in more than a year. At 10 00 eastern time the index dropped to its lowest level in 14 months. Americans were more worried about the job market. Meanwhile in Corporate News jp morgan will begin to raise deposit rates for most large clients next month. No word on how high those Interest Rates will go and analysts dont expect retail deposit rates to increase until the end of 2016 at the earliest but it is quite an indication that jp morgan wants to be the first mover for some of the big institutional clients that they want to start rewarding them at least a little bit for parking some of that. There was some there that didnt even want their money. They didnt but regulation has defined operating deposits differently from nonoperating deposits so the nonoperating stuff is what they dont want. The operating stuff which says its their deep client relationships. Its well telegraphed and documented what the money is used for. Thats the stuff theyre going to start paying for. Pep boy says carl icahns buyout offer is superior from the deal from bridgestone previously so theyre moving to terminate that earlier agreement. Icahns latest bid is for 1850 per share. That values pep boys at 1 billion. Some people on twitter, he made a funny traffic where he added carl icahns face. Thats hilarious. Sis coe winning a u. S. Patent dispute. The ruling from an Appeals Court yesterday reverses a nearly 64 million judgment against the company. Shares of sis coe this year. As you can see, meh, right in the middle. Anybody that has over 100,000 i just think, you know, this guy has got a serious problem. Do you know what i mean . If youre anonymous, what is that . What would need what deep human need is it . I dont pretend to know. I dont either. I actually do quite enjoy following them. I dont follow them. Youre up to 2100. Im up to 2100. Well over 100,000. How many of those are original and how many of those are replies to other people . I have no idea. In Corporate News from overseas, toshiba plans to ask for an additional 2. 5 billion in credit lines by the end of next month to fund a large scale restructuring. The company is trying to bounce back from a major accounting scandal. Whole foods will pay 500,000 to resolve an investigation into whether the chain charged too much for prepackaged goods at its new york city stores. The settlement will put the issue behind the company. Shares so far this year, youre looking at its gone down. 34. 24 and people still think of it as whole paycheck. They did a little bit because of this issue before but price have not gone down with the stock. Venture capitalist has resigned from the board of grub hub. At least one analyst says hes leaving because of potential conflict of interests and also sits on ubers board and they expand into free delivery but hes leaving to focus on funding and helping start ups. And whitebox is closing its three mutual funds. The journal says the funds held more than 300 Million Dollar and were shut on december 17th and will be liquidated in mid january. They will focus on the nearly 4 billion it has in hedge funds. The story is notable because its an example of hedge funds trying to move into the mainstream Mutual Fund Business and we know that hasnt always been a strategy that has worked out well. It will be interesting to talk to kate kelly about the trends in the Hedge Fund World and activist investing and what well see next year. Next couple of days could be major break time for the markets. We are kind of flat. So far the nasdaq, the only one of the big 3 that are higher for 2015. Oil is still a key driver for the markets. Its slightly higher this morning but down over 30 for the year. Joining us no is the strategist, i want to talk to him more about Interest Rates and the fed but its not like its not related to what john is going to talk about and thats oil. Founding partner of again capital and cnbc contributor and its a good name because a lot of things looked like we might test the lows. Do you think that given some of the bearish news weve had from opec and other places that were going to go we think we bottomed at around 34 or 35, have we . I dont think well go back to the lows quite yet. You think we bottomed. I did absolutely. I think we have a run at 30 here. Its going to get very ugly though joe late First Quarter, early 2nd quarter when theyre going through the periodic maintenance and well see back ups in the system. And the things that got reinforced yesterday that caused the sell off back down yesterday and not to mention the iranians are on an express track. They transferred the bulk of theirs to russia yesterday so theyre come pliplying with thes of the un deal. So that was a big thing for the market and the saudis announced their budge plans for next year. Theyre hunkering down. Theyre cutting back on spending and trying to streamline things and reducing a budget deficit thats about 20 of their gdp so theyre in this for the long haul and its going to be quite ugly now next year before all is said and done. I think its between 5 and 10 annual basis. Its not that much. So we could soar back to the nose bleed levels of 30, possibly. It sounds like a long way. 20 move. Way too expensive for oil. Im not paying that. Well, its been a nice thing for consumers obviously. 1. 67 new jersey. Did you see that . I did. Yes. Several places a long root 17. Youre kidding me. 1. 67. Route 17. Joe is writing this down. Its a wonderful thing. Theres been a lot of speculation and a lot of the work i know what steve has done and im seeing more and more data on this. About 70 of this savings now from is going into other part of the economy. So its finally starting to hit and i think the mastercard numbers you saw yesterday about the Holiday Shopping season data that they had shows that the gasoline savings are finally being spent. So this idea that the low oil prices somehow not great for the economy i still say is incorrect and overwhelmingly positive thing despite the damage going on. The annualized rate is 2. 2 . Thats taking the 12 month average of the annualized rates. Aside from the session we dont have, going back a quarter century, thats the lowest 12 month annualized rate that weve got going. So i just dont see in the consumer that this money is getting spent there. I dont know if its being saved more or whatever but also in the industrial side of things you would think that that would be a benefit as well although theres give and take recently with the utilities and the warmer weather but the production is negative. I have been scratching my head on where this extra money from the Lower Oil Prices is going. Seems like theyre hitting the consumer durables. Auto sales are spectacular. Folks are not just going to say chilis. Theyre spending on a higher car payment and washington machine. Theyre spending on higher ticket items than necessarily just pure retail. Well, retail im sorry. Go ahead. We want to talk to you about the fed. The uncertainty, its been removed now since they raised rates by a quarter point. Unfortunately im still very uncertain about whats going to happen next year. Ive seen one or two increases. Ive seen a decrease and then qe. Ive seen four increases to 1 . Ive seen, you know, they got 8 meetings so it could be all the way up to 1. 5 . The uncertainty has not been has it even been lessened at all . Now were talking about how quickly they move higher. A agree with you. I think the market is probably the number of rate hikes during 2016. The fed is at 4. One is more likely than 4. Were in a stage here where the Economic Activity of the Unemployment Rate at 5 , et cetera, that doesnt need a zero bound. However the momentum doesnt need a rate hike either. But i dont know that theres going to be the tun to go much further than that. Three of the last four gdp figure versus been 2. 1 or lower. Right now the atlanta fed looking for the Fourth Quarter at 13 and we know what the First Quarter has been like the last couple of years so youll have a period of five gdp reports and i dont know how that goes so therefore i think that the fed might be less aggressive in the year and i think the ecb might be less dovish than they think so i they the dollar is another thing that could maybe fall against the euro rather than go to parity. People have been saying that the last couple of days and the lead yesterday was no more qe regardless. I think that draghi, president of the ecb draghi was surprised at the resistance on the ecb to doing more qe. That was the surprise in the marketplace and it held most of those gains. People that wish we would stay at zero forever keep bringing up 1937. That we, you know, the fed caused another almost another depression by raising rates. What would cause us to do i just cant imagine that if we made a mistake and we were at three quarters instead of a half or a quarter, i cant believe that any of those things are that significant. I wish they werent that significant to what used to be a dynamic economy here. We used to be able to handle 3, 4, 5 rates. I know its the movement back to them but could the fed really screw things up if they got up to 1 too quickly . Could we go into another depression because of that . You know, i think that the place where the fed could screw things up is not necessarily going from 25 to 50 up to 75 to 1 but its the signaling mechanism. The more aggressive they signal i think the lower the ten year rate is going to go simply because theres not that one to one relationship between the fed funds and the ten year. The ten year reacts to how the expected reaction of the economy rather than what the fed is actually doing. The interesting thing and this is a bit into the weeds but back at the end of 2000 the ism index had fallen over the Previous Year and then i dont know if you remember, early in 2001 the fed did a surprise 50 basis point rate cut the day after that ism fell further from 48 something to 43 something. Interestingly in the last 16 months we have fallen from 58. 1 down to 48. 6. One teng of where we were in december and yet the fed raised rates for the first time in nine years. In 2001 they started on a rate cut cycle down to 1 . 6. 5 is not zero. The level of Economic Activity doesnt deserve zero. Its if momentum that i think is the question mark. You dont know whether i remember it falling . I think it fell to 47. 5 in june. I dont remember that. Oh, come on, youre a nerd. One more thing here and then we have to go. So was that for regular . Or premium. Regular cash. Did you notice what premium was . Its 20 or 30 cents higher. I usually pay cash. I dont know why i dont know to owe it for some reason. You don know why you do certain things. You don know why youre doing a lot of these things at this point. Yeah. Thanks, john. Youll be back again. It may not make sense to you but its starting to make sense to everybody else. Lou. I havent done that in awhile, lou. We have to talk weather this morning. We have a lot of it on the east coast. This mornings world of weather. We have a system dumping lots of snow on the southwest now threatening the northeast and dan has that story. Millions of people are under winter storm warnings. In iowa some roads were closed when as much as a foot of snow fell. In oklahoma thousands of people left without power because of the winter storm. One family thankful for a generator. We have the heater hooked up and the refrigerator so just the bear necessities. Chicagos airport was one of the hubs where they transferred travellers. It was cancelled or delayed. This is part of the same system that dumped up to 2 feet of snow on new mexico and the system is moving northeast where people are ready for the first winter storm of the season. Snow blower is ready, snow tires are on, were good to go. 12 inches of snow could fall in some parts of new england. Coming up, tesla ramping up hiring. Well tell you why but first as we head to break, heres a look back at this date in history. Its hard to find time to keep up on my shows. Thats why i switched from uverse to xfinity. Now i can download my dvr recordings and take them anywhere. Ready or not, here i come whispers now hideandseek time can also be catchuponmyshows time. Here i come cant find you anywhere dont settle for uverse. X1 from xfinity will change the way you experience tv. Global news rescuers are trying to reach workers trapped in a mine that collapsed over the weekend in northern china. The accident occurred Christmas Morning when 29 workers were down in the mine. 11 were successfully lifted to the surface leaving one dead and 17 others still trapped. The mines owner or operator . Killed himself or something. Yeah, bad stuff going on. Kohls has been driving chinas growth in recent years but the industry could have ripple effects on the economy. Chinas black gold. Coal has been the life blood of the countrys growth. Now its industry faces an uncertain future and the trucker is feeling the pain. Here lee and his fellow truckers used to earn 630 a month transporting coal. Today only half that. Trucks are idle. Partly because of the economic slow down and for another reason. A lot of coal mines have shutdown because of the Environmental Protection regulations he says. Some other coal related businesses also closed because they failed to meet the governments emission standards. At the Climate Change meeting in paris he reiterated his vow to reign in chinas Carbon Emissions to peak by 2030. Beijing is trying to wean its off of coal. Its blamed most for emission and pollutants. Currently china is the biggest consumer and producer of the fossil fuel and also the biggest emitter of green house gases. China still relies heavy on coal to power the economy so the government pledged to upgrade its coal plants to reduce pollution by 60 by 2020. Its also embracing clean energy. Its investing big in wind, solar and nuclear technologies. Still, critics point to beijings days of hazardous smog this week as evidence that chinas addiction to coal will be hard to quit. Its a cheap and plentiful source of energy. Difficult to resist, they say, for a government attempting to keep the economy from falling further even though, trucker lee is concerned about his own prospects in the industry. Living expenses are rising and i have a whole family to take care of. Im thinking of going abroad to find a job as a day laborer. Away from chinas coal and cloudy future. President obamas motorcade stopped after a drone was spotted flying on the commander and chiefs route. The video next. Plus why legos could be a better investment than gold. And first a look at yesterdays s p 500 winners and losers. Welcome back to squawk box sports news this morning. Denver broncos stopping the bengals from earning a first round buy in the playoffs. They cap the first possession of overtime and a. J. Mccarron fumble was then recovered to complete the broncos 2017 victory over the bengals in denver. I watched some of the beginning of the preshow stuff. I didnt make it to 8 15 or 8 30 when they started because i know better. And i actually had a run down described this morning by penelope. She had seen it. Its sad to watch this. But no because i expect this in primetime. I didnt see it there was a snap and he just missed it and the broncos got it. The broncos previously missed away shanked there and missed it. But bengals, i couldnt want them to get a bye because that would deprive them the opportunity of losi