Stock of the day, groupon, the company posting a loss. Just heard jim cramer talking about it the company reveal it had began to take a smaller cut of the revenues on daily deals during the holidays. It sacrificed revenue and profit to attract and keep merchants. All right. We will show you what just one quick thing, what these guys in the back do when they have Nothing Better to do. They put me they put leaseman into my hair. If anybodyist th if anybody thinks leaseman should get hair dont you think . I like people the way they are. Dont change. Dont change. Stay golden, ponyboy. Do not do the ron insana. Keep it off. Make sure you join us tomorrow. Squawk on the street is next. That was an image could i do without. Im carl quintanilla, melissa lee, jim cramer, david faber. We begin 89 points from the alltime closing high. Just this side of positive and chicago pmi on the way. Europe has gains this morning. Tokyo rebounded along with the rest of asia. China pmi is out tonight. Our road map this morning starts with what could be a recordsetting day. As carl mentioned, the dow just 89 points away from its alltime high, sit a day away from the potential sequester cuts kicking n the bleeding continues at jc penney. Sales down a whopping 28 from the Holiday Quarter. How much time does ron johnson have to turn things around in the stock down 40 since they took over . Speak of bloodbaths, group reason shares taking a dive on its much, much wider quarterly loss. Analysts not betting on the company being able to outage zohn amazon on its new strat joif selling goods. We begin with the dow taking aim at record territory after a second consecutive triple digit gape. The blue chips now less than 20 points from their alltime closing high setback on october 9, 2007. The dows intraday record high reached two days later, hitting 14,198. Jim, it could be a very important day for the dow but a lot of people will say whats going on with the s p 500, nasdaq and russell 2,000 . The dow hitting higher highs, the s p, nasdaq and russell not following that same pattern. The dow lagged last year, up 16 . I think that the s p is doing fine, not going to say is doing fabulously. Same time, the market is shrugging off these negatives. I think that the market is the overall market still acts terrifically. I keep expect program selling. The old dateses, we get to the milestones what would happen is the futures would burst out. Ys milestones what would happen is the futures would burst out. I think the market is stronger than anybody thinks. The week that has been, jim, and whether or not this is one giant crystallized by the dip example. Is that what we are in . I said last time, this market is rebutting all the presumptions of negativitnegati where were the buyers monday, supposed to be freaking aboutitily . Felt like that was program selling and we get a series of good numbers and you get buyers come bang, selling in that last hour, im now deeming phony. Futures, no buy backs, markets collapsed. Turned out to be wrong, it collapsed. Here an accommodative monetary policy, reasonable valuations, i guess, you would argue . Yes, i would argue that. Activists making things happen. Even though theity tall yap situation is going on, he indicated he might be open to more easing, stimulus that would put a backstop on the european markets, at least for a now, despite the uncertaintitily. We have the southwester starting. What is that . That has become a footnote to all of this. Trouble going to sleep tonight, think about the sequester. That is the wrong word. Just too hard. If you polled people, say, at a knicks game, sequester what do they think that is . Like a fuel five thing, baseball. Just too hard for people to get criminal Justice System gripeds to a halt, you will never fly again, the National Parks are closed and not going to be able to deter terrorists, otherwise the thunder birds, air force pilot, jet he is. Im going to spam. Spam i think spam inspected 23 years ago, the cans. Hormel alltime high yesterday. What a stock that is. Spices, jelly and spam. Hormel, smucker and mccormick. Definitely inspected those things within our lifetime. What you want for the bunker. At alltime highs. The bunker trade. The defense stocks at an all time high. So bad for defense, why did Huntington Ingalls have a great quarter . New port news. A disconnect. We keep trying to figure out why doesnt the sequester hurt bristolmyers, why isnt bristolmyers going down . Mkm looks at all the hikes of the week, the home depots, the texans, the well points, home depot, i mentioned. Why would you hike a dividend if you are worried about cash flow going into this period, supposed to be so bad. Dominos innish tate yaits a 20cent dividend. Nordstrom announces a buy back. I do want to joint macropeople who come on the network. What was the growth of the economy . I will give put disfunction of the u. S. Government is planning our demise over the long term unless we can get it together. Doesnt mean you shouldnt by the s and p noufrm you probably should. Thank you for not saying because of the 2040 problem withed me care i will go out there now and short the naz damage. Other than apple, you think you can get away with shorting things. Am, did you see the release ex1 billion itunes, i got it because im men of itunes. I tunes content tops am. Why doesnt this get the stock out of the rut . There we go. A good day to talk retailers. We said earlier, another setback for jc penney. You call that a setback . Sorry. Ceo ron johnson, efforts to traps form the company, the Department Store chain down sharply in the premarket on news of a much wider than expected Fourth Quarter loss. Samestore sales down in the third period. Margins weakened. Last night on the earnings webcast, johnson acknowledged making big mistakes and says he is overhauling the no discounts Pricing Strategy unveiled more than a year ago. We have brought back sales. We have brought back coupons for our rewards members. Although we still call them gifts. And we will offer sales each and every week as we move forward. But we will do it differently than we did in the past. We dont need to artificially mark up prices to create the illusion of savings. The pileon here is almost too easy. Web business down 34 . The post today on how they have enlisted sergio zileman, the architect of new coke, to help run marketing oh, thats great. He has been called delusional. Ought to do zileman, they got to rename the company. New jc penney . Got come up with something . Completely abandoned their to old customer who doesnt recognize them anymore. Should go back to call themselves jcp, go back to jc penney, signalling a return. What was interesting, they did a surveys have took 600 samples, 67 of the feedback was negative because people indicated that they grew up with jc penney, had a lifelong relationship, jc penney abandoned them, gave up the coupons, promotion, customers dont know what to make of the new store. Johnsons may ya cull parks 4. 3 billion in sales, how much was lost under johnson since he took over, 4. 3 billion. How long can this man keep thinks job . People losing their jobs, 31 down how long . What do you have to do to lose your job in this country . I give him another four months, 27 days. You are going to give him the 27 extra days . You are a forgiving man. I think my favorite lines is i just want to comment, theres a rumor today about jc penney, incredible layoffs coming two weeks ago, 300 people. Valentines day, this or that. He is combatting the negativity u he is. Certainly resetting the bar. I would think if he is around Fourth Quarter easier conversation, right . I was on that show. You go in, did he say that carters is doing better. The feet pajama people. He did say jewelry was doing joe fresh r on the site. Joe fresh. Yes. Im following give him the benefit of the doubt. Home department goes from 20 down to 10 . . Sarcasm, correct . Completely and utterly. By the way, sears what do you do with jc penney . Short the heck of it . Already 40 short. Some things are im running it. Thinking what to do if im running it. Sitting back at j jchljj crad co . Look on the credit side. Go against the preferred. Shocked how long the guy has been there keeps making mistake after mistake. If i was running jc penney, find which of the stores are working, like sears has done, put money in those stores and close the ones underperforming. Sears is putting money in stores . Sears had a good quarter. Why do you laugh . Because everythings been put into a different relief through the prism of jcp, right . Jcp would make anybody look good, right . Kohls, you name it. American motors look good if they were this is gimballs and littss. Bradlees, really bad comparison. You think we are doing badly . Look at bradlees . Ej corvette. 11 david, in terms of the cash, they missed the target and payables went up. Yes, they did. Pushing out what they owe to the Current Quarter as opposed to paying it the Fourth Quarter, it artificially inflates cash. Do have two large shareholders, needed to done equity offer of some kind, some sort of an offering to raise money could they conceivably do it . Offset any concern at all on the part of vendors, those who finance those vendors in. Think carl eye can comes in and announces a 13 short. We can call carl icahn. He is probably not up. You have the icahn nailed. Had it for a little bit. Havent spoken to him a while. A lot of other discussion today about kohls, despite the weak guidance, looking for very little or no growth in the quarter or the year. Morgan stanley cutting saks to underweight, looking the cross creek and volatile macrosetup. Kohls, they have tremendous value but did say the last couple of week he is of the quarter were hideous. They fell on their sword. You go to kohls as you know i often do. I buy slacks there kohls has great slashing sonoma. Get a half a pant for 6. I forgot park i buy trouser there not slacks. You guys laugh at me. I go to kohls, i have a good one on route 22 in new jersey, you would be surprised, tremendous, just they dont have the good credited card penetration, jc penney, not very good this shut problem with pennys, jc penney has sephora, i dont need to go to sephora, pbh, i can go theres nothingtodistinguishing. If you said to me, jim, where did you get a suit, i said jc penney, would you say uh. Its the name. Like no one feels like and theres no distinguishing why im amazed run gren is able to distinguish macys, argue jc penneys, a loft home turn around on Martha Stewart. What happens if Martha Stewart loses that court case . Just another thing johnson did wrong . Had how long he lasts, is there a point which investors say im not going into a Holiday Season again with this guy. Right . Right. I think it is time to goes to grants, to go to s klein. Honestly, i do want to go in with this guy . Conference call starts off like the groupon Conference Call with all the positives, everything these are all the things. Alternative reality. I know. Hello. Peter pan. Neverland. Neverland syndrome, david. Yeah. Is that what we are dealing with . Neverland syndrome what they call it. Make that up or i just came up with that now. Pretty good, wasnt it . Better than your daughters play . No nothing could be better than that. Aw. Circle back to these names in a bit. When we come back, debate willing twitters value. Is the social networking firm really worth 10 billion . First, the groupon skid. How low can the daily deals website go as it loses a quarter of its market value last night . Take one more look at pa market features is. Is today the day we hit the alltime. Squawk on the street live from post nine when we come back. [ construction sounds ] [ watch ticking ] [ engine revs ] come in. Got the coffee. That was fast. Were outta here. [ engine revs ] groupon said it took a smaller cut of the daily deals on the holidays to keep merchants. Jim, speaking of neverland, that groupon call was like andrew mason, are you in touch with reality . He was saying its hard to believe that just a year ago, we were just a daily deals website. Its hard to believe that your stock is down 70 since its ipo price, not including todays tumble. I thought that was the most unrealistic Conference Call i have been on in multiple years. I have thinking about that retain world, a retailer by the name of two guys from harrison, ron johnson and andrew mason, two guys from fantasy land. An extraordinarily bad Conference Call. Al leiter. Food pitcher for the mets. They are here to ring the opening bell. Snoop at this pi is here. Snoopy . Snoopy doesnt have snoop dog. In jc penney, everyone else gets a little, right . The mason call was just honestly, the groupon call was it was one of those calls, Herb Greenberg spends his whole life trying to find something this bad. To just there it s. Then as well as, albeit late to the party, down grades, saying they are no longer a platform for merchant bus more of a discount inventory retailer which puts them right in amazons crosshairs. I have known that, i never took advantage of that brazilian thing brazilian wax . Miss the days when you bring that up. Go back to august 19, 2010. This shook the world did a gap. 25 off of a 50 purchase at gap. This is what got everybody going. And that was it. It flamed out. It was a onehit wonder. You wonder whether there was a real Business Model there plenty of people who threw their hands up at the time, looked at the road show, you can view on the internet. Pilgrimage to chicago. Figure it out. Understand it who was in charge . You look back now at groupon saying a lot of questions if they are a sustainable business. Linkedin was the survivor and now the deliver. Linkedin is a great site. Great piece in the times this morning. Journal. Linkedin, they would come on tv, they had a very definitive look at what was gonna be good. Linkedin rallies. I was very suspicious initially. What a wrong call by me. They have it going. Jc penney lost a snowball, linkedin rallies, caesars cash in, another one, david, you love. One one page of the wall street journal, everything you need to know. They will be glad hear you say that. Why not . Nice, good paper. I used to work there when we come back, two Straight Days of triple digit gapes what is the best way to ride the bullish momentum . Take a ride with cramer, his mad dash next. A little indecision creeping in here, a heck of a session no matter what happens. Squawk on the street from the nyse straight ahead. With fidelitys new options platform, weve completely integrated every step of the process, making it easier to try filters and strategies. To get a list of equity options. Evaluate them with our p l calculator. And execute faster with our more intuitive trade ticket. Im greg stevens and i helped create fidelitys options platform. Its one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. Humans sometimes life trips us up. And sometimes we trip ourselves up. But thats okay. At Liberty Mutual insurance, we can untrip you as you go through your life with personalized policies and discounts when you need them most. Just call. And speak with a licensed representative about saving on your policy when you get married. Move into a new house. 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Look at the same time, making progress, but unlike ron johnson, eddie lamp the says our focus continues to be on our core customers but theres more work to do not like he is oblivious. I do like their internet, doing well, versus jc penneys internet, faltering beyond believe. Most posting 30 comps up, not down. On the jc penney website, frankly, its fine, just not exciting. How about monster . Monster beverage an unbelievable story, i like to have a little monster before i come on the show every morning. Cant tell. Jpmorgan says sales trends decelerating throughout the quarter. Here is what matters. Internationals doing great. Taking shares from red bull. This is one of the things people felt there would be health issues, go over a cup of coffee versus monster and how a cup of coffee has more caffeine. I think this story is done going as well on monster. 52. Remember that. 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