Right around that 3 on the 10year yield. A little bit over 3 , that of course continues to be the key in so many ways. Lets take a look at how we traded in europe so far today. As you can see, sort of a mixed bag, lets call it, a lot of red on the continent. As for our road map here in the United States, 2013, any way you say it, a fantastic year for stocks, dow and s p, brand new alltime highs. What does the new year have in store . Were going to take a closer look. Plus an American Institution no longer. Fiat has officially signed an agreement to acquire the remaining stake of chrysler it doesnt already own. And a long legal fight over. Martha stewart and macys that started over a dispute over rights for home products. And blizzardlike conditions, winds could be hitting 45 miles an hour, the subway is the way to go in new york city. Does it ever go down, other than the horrible storm . It is the rocket and it does work. It is the rocket. Talking about rockets, jim, it was in fact a very happy old year for the markets, the dow up 26. 5 . That was the best year for the blue chips since 95. The s p of course where Money Managers compare themselves, best performance in 16 years. It was up more than 29 . The nasdaq, get this, 38 . Thats a 13year high. Yes, it was march 10th, 2000 that we hit the alltime high. One wonders whether were going to see it again. Futures moving lower this morning, pmi showing slower momentum in manufacturing activity. The last five years, the first trading day of the year weve seen the s p move at least 1 or more one way or the other. Most often up except for i believe it was 2008 when we moved down substantially. We do typically see a lot of activity on day one of trading. A lot of people made sales, take losses but there werent a lot of losses last year so maybe that doesnt happen this year. One thing i really want to make a point of this. We come in and it was chinese pmi, were trading off of that or italian bonds. Forget about it. It didnt work. The people who sold those things, look at this italian bond yield now. Look at spain. The people who sell off of the chinese pmi, thats a nice, quaint thought, something that happened beginning in 2007 and really ended in 2013. So anybody who traded off those things, stop trading, start investing. It doesnt work. It didnt pay to worry very much in 2013. I find myself, though, im a worrier. Thats what i do, thats what im paid to do, to be concerned about certain things or try to understand what those things are that could cause problems. Its why youre a great partner and carl is a great partner. We have to balance each other out because otherwise i was thinking before we started, you have to understand we talk, i said, david, beginning of last year theres going to be a lot of m a this year. The articles would say there were but it just was the dollar amount. You said be careful, this is the kind of thing we could bring to the party. There were not a lot of deals. There were a lot of ipos but a lot of share buyback. The net issuance was still not that great. That was a year where the supply last year was not in keeping with demand of the stock. In terms of corporate buyback, 702 billion, up 60 of earlier authorizations. That was the story of the year i would say. If your top line is not moving as fast, your bottom line will, using cheap markets to finance buybacks because it can be accretive to cash flow amazingly enough. Yes. There dont seem to be that many things other than Interest Rates to worry about. I hate to hear that come out of my mouth. Thats one of the things that always looked bad in 2008. How many times did we say nasdaq overheated and nasdaq is up. I look at twitter, though. Last week watching whats going on, it makes me feel like we used to talk every morning back then, of course you were running a hedge fund and i was sitting on the squawk box desk, it did feel a little bubbly. That was an interesting short squeeze that then burst on one particular day. I think the interesting story of the First Quarter will be the interesting story of the First Quarter. There are not enough quality industrials or shares of industrials around. So you look at the 3m, my quintessential. United technologies, allegedly preannounces, no, not at all. We do not have enough quality industrials. Look at boeing. Thats because they bought back a lot of stock because we do not believe many skeptics dont believe if the tenyear goes to 3 theres anything to buy. The industrials, tremendous resilience. The banks. How about this bank of america upgrade today. That could be a way to go. I think industrials and financials continue to do well. Once employment started getting better, the eli lillys of the world were stopped in their tracks. The way that you saw an alcoa, norfolk southern, Union Pacific, Union Pacific preannounces and finishes at 116. A coal company goes to 77 and then rallies. Fedex preannounced and you called it the teflon stock. And speaking of teflon, dupont, 64. Industrials. Thats where we need to be focused in the First Quarter certainly, the industrials. Overall the market is still, many would say, its 14. 5, 15 times numbers. Were still in a low Interest Rate, lowinflation environment and you could argue for a higher multiple. Those are arguing we might get to 16, 17, 18 times and still be okay with it. If we get to that. Ive done a lot of calculation in preparation for tonights mad money. That would produce a 15 to 17 increase in the dow if we got that multiple expansion. But one of the things that happened at the end of the year that shocked me, you begin to get an exxon, almost like a small cap run, its incredible to see that. Dont forget the whole complex of mobile and social and yelp goes to 62. Watch yelp. Its an important barometer. Yelp is not the key to this market, ala lumber liquidators. Lumber liquidators was the key to the market. Two quarters ago the stock goes from 79 to 72. Why . The fed is going to tighten and Mortgage Rates will go higher. And rates do go higher and home depot goes from 72 to 82 because its well managed and well executed and housing is still doing well. Lets talk about all the oweowe autos. Fiat 3. 7 billion in cash is one part of the price and theyre committed to giving the trust an addition 700 million over four years. It means no chrysler initial public offering, as was their right to ask for and push for. Instead they end up with the deal for. 35 billion overall and giving something sergio wanted, which was no ipo. Now its italian owned. It had been already controlled, now its fully owned. Theyve been doing pretty well. Italy manufacturing has been way up. Ireland, by the way, with unemployment coming down, italy unemployment coming down. You speak to so many in m a. Look at fiat today. Lets say theyre buying the rest of chrysler. David, how many times did we sit here in 2013 and i say to you holy verizon just spent 120 billion and its stock is higher . Fiat, they go buy the rest of chrysler and the stock is having the big move. It is the way of 2013, it will be the way of 2014. And in this case perhaps theyre paying a bit less than people anticipated, theres some relief there wont be a public offering, i would assume. What characterized the little m a, the stock could go up enormously yet it wasnt enough to convince those to do the deal in front of them. I try to keep in touch with as many people in the m a world as i can and they do seem to be getting reed for a busier year, without a doubt. Look at a sprint. I cannot blame anybody from downgrading. This stock went to 10, david hertz, even though they were absolutely decimated by the previous quarter, now theyre starting to do reconstruction. Danettes has had a monster move since they took out a competitor and i think the airlines are going to have a better year this year. Really . Airlines a better year . Youre talking about in part coming back to the deal itself with us air. I know that Herb Greenberg was a contributor. Talking about the united air continental ceo. The stocks been a rocket. Any ceo that gives you a stock thats a rocket, thats not a bad guy in my view, thats a good one. But the industry is so fundamentally changed because the root structures, theyve gotten out on the bad routes, raising the prices for the good ones, the government identified the monopoly and the most shocking deal of all was the Justice Department caving on the u. S. Air deal. Caved we were surprised, frankly, that they came when they did because it was so late in the game and then of course they agreed to a settlement that many say left the deal largely unscathed. Unions win, boeings win, shareholders win. Consumer what am i paying for my bags now . What do we care about them . Theres 310 million of them. It was an outrage. It was an outrage. But the Justice Department in the end, like this Justice Department throughout the run of obama, the most positive antitrust department i have ever seen for business. Which is having because arent they always squawking about inequality. The big deal that was stopped in the last few years of at t tmobile. A key question weve discussed, tmobile and sprint. Will we see justice a know way, guy, we cant let four go to three in wireless. I think three you have competition. Verizon stock does a buy, that stock goes up. Sprint, tremendous rally. At t been a real lagger here. They need to do something, too. Youve talked about the idea they could do a cross border. Hes made no secret of that, that being randall stephenson, get behind the idea that we might do something in europe, that might be vodafone. Well see. A note about tmobile today. David, if we see a sprint, if this is what its about, if its about tmobile sprint, you get a downgrade. You know what is another feature of 2013 . These downgrades on valuation have left so many analysts behind. I know, but i you know but thats the scary thing when they start downgrading a valuation and everyone sits there and goes, ah, ah, youre old news man, i disagree with up. If theres a transformation, im going to pay a lot more for Ingersoll Rand than i used to, no, i dont want that. I mean, hey, amazon . Love amazon. Became an amazon prime member during vacation. Couldnt resist. And i bought the kindle fire that thing is on fire coming up, we got the northeast bracing for a storm that has turned chicago into the snowy city and resulted in hundreds of flight cancellations. Well have the latest forecast just a few minutes from now. Also ahead, former pay pal ceo bill harris, find out what he thinks about the future for bitcoin. Lets give you another look at futures trading. A lot more from squawk on the street from post 9 right after this. Thats correct. Cause im really nervous about getting trapped. Whys that . Uh, mark . Go get help i have my reasons. Look, you dont have to feel trapped with our raise your rate cd. If our rate on this cd goes up, yours can too. Oh that sounds nice. Dont feel trapped with the ally raise your rate cd. Ally bank. Your money needs an ally. Ah, yes, you feel like you know me better now . One of the great joys of coming to work is working with you. One of the reasons why i think that is is that youre always relaxed and calm and perhaps it is that workout. And swimming. You manage to get the angst out . Because i get bored stiff. What do you think about when youre swimming . I swim against the clock so im always pushing myself in the swimming. So i do a workout of 2,500 to 3,000 yards and a lot of it is against the clock, especially the ims with the butterflies and things like that. Do you put it all out of your mind . Everything goes out of your mind except for just swimming. And afterwards you feel good. As i sent you an email this weekend, happy new year, i love coming to work. I love it, i love it. As do i. For many years to come by the way. Im waiting for you to say that out loud and thanks you for saying that. The weather channels mike seidel is in boston. Im trying to figure out what im going to be doing the next 24 hours. What can i expect as i watch you in that snow hitting you hard up there. Good to book a room in new jersey and new york city. Though its not doing a lot around new york city, the worst will hit there tonight and friday morning. We have blizzard warnings for long island, winter storm warning for the city, wind gusts nearly 40 Miles Per Hour will cause whiteout conditions. In boston weve already got an inch or two of snow. Were getting an ocean effect. The cold air over the relatively warm water, its 19. As that storm cranks up, its going to bring up colder air and temperatures will be down around 10 to 12 degrees in the northeast corridor. Wind chills tomorrow morning, 15 below zero, snowfall over night, 1 to 2 inches an hour. Somebody is easily going to get a foot of snow, like on the south shore. Schools there closed tomorrow. Headaches at the airports are mounting. Over 200 flights cancelled out of newark and well see those numbers sky rocket. The snow will wind down by midmorning friday. And the cold air by central park if it gets to 3, that will be the coldest and in boston were forecasting 3 below zero. So a big storm. Not the blockbuster last february 9th and 10th. The difference is that its so cold, the snow so powdery, its going to just blow around. Out here at the hotel, they dont wait for an inch or two to fall, theyre going to snow bush it all day, all night. I cant wait to see these guys out here tonight, its going to be like raking leaves on a gusty, windy day. Back to you and cramer in the studio. Theres a man by the name of eric weisman, the ceo of vf corp. This is unbelievable for him. It will be clear skies saturday, people will be freezing. Wow what a quarter hes going to have and i love that 4 for 1 stock split, you buy vf corp right now i like that you can make a stock peacekeepick out of every. I love the 4for1 split, congratulations, eric weisman, you planned it well. We have more squawk on the street coming up right after this. And it feels like your lifeate revolves around your symptoms, ask your gastroenterologist about humira adalimumab. Humira has been proven to work for adults who have tried other medications but still experience the symptoms of moderate to severe crohns disease. In clinical studies, the majority of patients on humira saw significant symptom relief, and many achieved remission. Humira can lower your ability to fight infections, including tuberculosis. Serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer, have happened. Blood, liver and nervous system problems, serious allergic reactions, and new or worsening Heart Failure have occurred. Before starting humira, your doctor should test you for tb. Ask your doctor if you live in or have been to a region where certain fungal infections are common. Tell your doctor if you have had tb, hepatitis b, are prone to infections, or have symptoms such as fever, fatigue, cough, or sores. You should not start humira if you have any kind of infection. Ask your gastroenterologist about humira today. Remission is possible. All right, we have about five and a half minutes before the opening bell for the new year, man. I cant believe it, 2014. I wrote a couple checks yesterday. I was like, whoa, how did it happen. It is incredible. They keep going by as you get older. When you get younger, they took forever. Percentage of your life. We have a typical beginning of the year big splash. Wells fargo going buy to hold apple. Whats interesting about this downgrade is its filled with positive, new watch coming out, holidays strong, they had a great quarter. But this is something that you talk about a lot. Leverage swings back to operators might be coming. Theyre talking about the operators being able to grasp more of the gross margin. So verizon and at t i mean, they pay so much to apple for those phones and then of course we dont pay nearly as much. But dan hesse from sprint has always been the outlier who has paid up. I dont like this call is what im saying. Why . Because they talk about dividend increases and share repurchase. This is a buy. For a stock thats trading at what whats the multiple on apple . Single digits or double digits . Pe theyre saying 12. One of the things thats difficult that a lot of people got apple confused and they upgraded and downgraded wrong. Stay close to the facts. I think they had a great christmas. They did at my house. Holy i know. Also kindle. It was an apple and amazon christmas. Thats a lot of purchasing that want necessarily at walmart and maybe thats why piper said that target may have had a better quarter. Ive stayed away from those stocks. Were going to stay away from that until after opening bell. Squawk on the street coming back right after this. Announcer order jim cramers theres nothing likejim cramers being your own boss and my customers are really liking your flat rate shipping. Fedex one rate. Really makes my life easier. Maybe a promotion is in order. Good news. I got a new title. And a raise . Management couldnt make that happen. [ male announcer ] introducing fedex one rate. Simple, flat rate shipping with the reliability of fedex. Became big business overnight . Like, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology instead . Imagine a companys future with the future of trading. Company profile. A Research Tool on thinkorswim. From td ameritrade. You are watching cnbcs squawk on the street and as always were live from the Financial Capital of the world. The opening bell set to ring in about 30 seconds here to open trading for this new year. As i said earlier, jim, we always have fairly big moves. Well see if that proves the case today one way or the other. Typically of the last five years, four have been up at least 1 , weve seen at least a 1 gain in the s p, including 09, which was before we saw lows we hadnt seen in a long time. But it would be interesting if we saw our market be the in other words, you come in chinese pmi. I want to be very clear. Theres been a lot of misinformation. Its been going down. So china, i just want to emphasize if youre trading off of china, you shouldnt be that bullish. If youre trading off of america, you should be. You just heard those opening bells. Were looking at the realtime exchange back at hq, new jersey there. Here at the big board celebrating its centennial verse is Booz Allen Hamilton and at the nasdaq, nutrisystem. Do you have any resolutions . Two things. No more diet tricks. Im sorry, im sorry. They send me three cookies every day, the cafeteria and theyre fabulous. Theyre done i should have told them personally. I cant ha