Lot of movement there. Oil still in many ways, im going to say it, key to the market. Yes, yes. He agrees. Totally true. Im glad i i wasnt sure you would agree. There we are. Crude at 76, brent around 80. Big meeting this week. Big meeting this week as well. Our road map this morning and it starts with markets. S p looking to its 46th, 46th record close this year. The dow looking for its 29th. The nasdaq looks about 7 off an alltime closing high from march 2000. Yeah, i remember that. Gas prices fall fog fouryear low. Opec preparing to meet this week. Raymond james weighs in on chevron, exxon, hess, occidental. United technologies announced the chairman and ceo is retiring, effective immediately. Ill tell you whats next for the company, who the new ceo is and ask questions. Not sure we have a lot of the answers. Lets get to the markets. For a sixth consecutive week of gains. The 45th record close of the year, the dow its 28th, nasdaq, as we told you, new 14 1 2 year high, 6 out of 10 sectors at multiyear highs. I hear all of that and i say, oh, oh a little scared. Well hearing all of that. Are the earnings there, i dont know. Decent valuations. Byron is the key for valuations, says were okay. I do think that this is a rally that wasnt supposed to happen. Its a rally where the second leg of it is about Interest Rates in europe. And about their weaken being our strength. Pulling huge amount of money, i think, worldwide. When italian tenyear, remember at 7 in yeah. About to fall apart. Now 2179. Spain. 1947. Part of the p. I. I. G. S, failed countries. Theres no way you can keep your money there. Got to keep it here. Doesnt matter if the feds not buying bonds. Suddenly youve got a situation where you really are looking for yield. Theres a lot of companies that yield better than the tenyear. And i think that basically what youre up against, no other game in town. No. And of course the japanese doing anything and everything they can. Buying anything thats not nailed down, trying to create inflation. Youve got draghi, ill do whatever it takes. Theres trying to do something, though as you pointed out, its merkel who wears the hoover pantsuit. Yes. People push back at me and say shes prostimulus. You know, maybe im old, but thats a stupid she isnt. I mean, shes very much of a balance budget person. Germanys the big beneficiary of the European Union. You can write all you want or criticize, i dont give a damn, but what matters to me whats going on here, he, draghis, doing everything he can to prevent germany from take down the euro from the European Union. And what he also wants is not to have a right wing country spring up. I mean, like nazi germany did because of this kind of thing. Right. Thats what he cares about, theyre historically oriented. The asset buy, i misjudged it, there are billions of dollars at stake that he can buy. Ive seen european banks do quite well. Im not im saying hes doing a darn good job and has to counteract her. And those who defend her are on the wrong side of history. All right and back to our market, as we move into the last six or so weeks of the year. What should i be thinking about, what should i be looking at . You mentioned, of course we both did, oil the key to the market. Hanging in around 76 level but not good across the board. Good for the consumer. Consumerrelated economy. If you look at companies involved, where they want people to spend, i mean, i think youre going to have a very good Holiday Season. Right about now we sbee the ne york times write a story how bad the Holiday Season will be. You put that story out. Do we have ta story yet . Someone gin up that story. Its hard to think it wont be a much better christmas when you have 2. 50, you have better employment, house up in value, numbers from home depot. You saw target do a good job. Walmart, what you know better than anyone, doing better. Concodowngraded by conviction. Of course. About given in a consumerrelated economy, if the 13 of the s p related to oil going higher, thats a lot of the s p that is related to it going lower . Is. Some companies, dow, dupont, input is gas, to a certain extend but price output on oil. So theyre not in a great position. No. I did a piece this morning for real money for the street. Com about andrew libras and frank mitch is saying, didnt put it in the piece, saying they shouldnt be that correlated. If oil bounces, dow goes to 55, thats what happens. Andrew saying, listen, onefifth of the biusiness should be related to that. Historically a negative correlation, undeniable. Lets talk more about it. Ahead of the thanksgiving travel weekend, u. S. Gas prices falling to a fouryear low. 2. 48 a gallon, that is 88 cents below the peak of the year which came in may. Raymond james downgrades exxon mobil. Sakes chevron down as well. Had been a strong buy. Getting downgrades on the stocks. These are important. Exxon has historically traded the opposite of oil. One that people has always reached for when oil goes down. This is a upgrade of oxy, leavered to the price of oil, particularly american oil. This could be a very significant switch because theyre calling the bottom up. I think that opec is in big trouble here, and i say that because when you look at venezuela with 2. 2, nigeria with 2, these are countries where we imported a huge amount of oil from. Im predicting that we will be producing enough oil we wont need opec 18 months from now. Opec has to think of countries when you say we wont need opec,s that a strong statement 18 months from now. What do you mean . Wont need them . Were importing, let me get my numbers. Still are. Yes. Importing were at 30year low of what were importing 2. 9 million barrels. We are pumping 9 million a day. If you add up the percentage of the big majors and the independents what theyre saying they can grow production, it would mean we should be at 11 million years 18 months from now. So thats very lit that were getting close to nothing from them. Right. If you add 2 million barrels, importing only 900,000 barrels from opec. Remember, canadas a big importer. So were not fully energy independent. Ahead of when most people thought weed be continentally independent. These numbers say, opec, we do not need your oil and no place to put. Chinas not using oil. They can do all they want to try to maintain the price but we dont need it. They have to cut back production dramatically in order to help these ailing nations. And saudi arabia may there could be a rebellion against saudi arabia. Right. Its an interesting point, one we certainly done have the time nor perhaps expertise to get in fully. Geopolitical ramifications of falling oil, whether russia, iran, different areas of the world are quite significant. Yes. And i think that, again, this rally, you started out with an important point if we moved up, when you hear nasdaq up to those levels and think, wait a second, is it gilead that should be this high . Are we right to take Sky Works Solutions up this high . There was low multiples coming in for technology, i dont like multiple expansion, i want earning expansion. When you have a stock like target or walmart theyre downgraded as they go higher, what people have to do is come back to them because these companies havent had good years in many years. Theyll because of the way that people have more money, theyre going to have very good years. Yeah. Let get to the United Technologies, which jim and i talking about offcamera, curious, it would seem at least. How do you pronounce his last name . Retire eing as chairman immediately. Gregory hayes named ceo. Edward kankis nonexecutive chairman. In the job six years. Average ceo tenure is not far off from that. Right around seven years thats not as unusual as you might think. But 100 billion company of this time, theres Succession Plan in place but more typically than not, you get the announcement, transition, anointed successor, some heads up here. This is a the company, only thing ive seen i havent had an opportunity to get any sense here on my own phone calls, a spokesman saying nothing to do with Financial Performance to another reporter who reported on it this morning. My Charitable Trust owns United Technologies, its a d disappointment versus honey well. Dave cody of honey well, parliame far outperformed. Ge has better growth. It doesnt mater. Shame on them for not putting out anything else. Do they think were this stupid . Were going to say, thats fine. Youre curious, right word, but you cant put this out and say, we dont have to explain what we do. Your big publicly traded company. This man is not supposed to be stepping down node and Gregory Hayes come in. They think were a private company. Something out of another era. Weve remarked on the fact with ceos youve started to get straight change from companies saying he was fired. Right. Or whatever it may be. How about give us having an affair. Any number of things. By the way, not saying any of that is at play. It does raise questions. If i were the s. E. C. I would call and say, you guys mind putting out a release . Wheres the obligatory spend more time with his family, its thanksgiving, that would work. Its the immediacy come on. Its out. They obviously had a plan, you assume, in place. But i am curious, im hoping perhaps to speak to people close to see if theres another story here. Many wonder whether thats the case. I dont know what hes go on to do at 57. Thats young. They did the buyback, talking about doing a better job, the stock was starting to catch up. And then hes gone . Hes just gone. Like, hey, you know, heres your hat, dont let the door hit you on the way out. Dont know a great deal about the cfo. Gregory hayes. Yi. Gregory hayes. Strong name. Like bob hayes was very fast. Of the hayes people. Rutherford b. Hayes. So so president. We know more about him than we thought. He was the cfo. See that . Look what weve done in just in terms of like three minutes time. Incredible. Analysis, insight. Context, amazing. Lets talk tesla. Appears teslas emon musk talking partnership. The stocks getting a lift on the news. Sara eisen going to talk we call him a titan hes a king, titan, Jeffrey Gundlach. Lets start putting this stuff in context. This guys worth listening to. Nine straight months of inflows, every time he goes on tv, i bet those flows heat up. Were back after this. Music. The getaway vehicle for all the confidence you need. Td ameritrade. You got this. The New York Times reporting that defense secretary hagel is going to be stepping down under what the times cites as pressure as he will be stepping down, of course, as defense secretary. Perhaps as soon as today, expected appearance later today by president obama, expected to announce mr. Hagels resignation. Recall hes only been on the job, i think, less than two years. Yeah. Certainly during the second term, of course, of the president. Times saying the president s decision to remove mr. Hagel as a recognition the threat from the islamic state, that being icy, would require a different kind of skills than mr. Hagel was brought on to em employ. Recall hes a republican, obviously military experience had been a senator, skeptical about the iraq war. And now were talking about afghanistan, keeping troops there. But most particularly the continued and perhaps what will be increased fight against isis. Clearly. If you have to rebuild the u. S. Troop presence in iraq, i mean, youre back to back to a wartime. Unclear who is going to be nominated to replace him. A couple of names here, former undersecretary of defense, senator jack reed, democrat of rhode island and ashton carter, former secretary defense. All according to the New York Times. Wow. Lets move on to tesla. Wow. Ceo elon musk saying his companys in talks with bmw over a potential alliance in batteries and lightweight parts. Musk describing bmws carbon fiber car body parts as interesting and relatively cost efficient. Bmw is supposed to destroy tesla. Teslas got nine lives this is recognition of teslas technology. I keep thinking of the decline in what we thought was the projection of tesla, Morgan Stanley last week. So im not as gung ho about tesla because i think a number of cuts means you should walk away from the stock. Im sure people will say this is the endorsement were looking for, bmw is not coming in, smart people saw bmw electric car models and thought it was the car of the future. If theyre adopting tesla, then theyre not the car of future testing. With full knowledge people dont buy tesla as their primary reason because they dont want to be filling up with gasoline. Does the falling gas prices impact sales at margin . There i think it absolutely does. Weve seen according to the ceo of marathon, big they have all of the stores, right . Huge number of stores, actually gas stations, that they are the numbers are up very big for gas guzzlers because the American Consumer likes a good gas guzzler. F150 doesnt have as much, new one gives you two more miles to the gallon. Now youre selling this stuff again back on the Great American dream of owning a big car. A big car. Cafe standards are coming up, continuing to come up. Right. Thats a good story. Interesting story today as well about solar power and wind power competing now in a real way. I thought that that was a lead story for me, because when you get that, what it says is that youre going to put a panel on your house and these Utility Companies are not set up for this distributed power system. Right. I think that david crane at nrg would tell you that, hes a terrific guy who really recognizes that its really, its its armageddon if everybody decides to have for if we can have brings us back to elon musk and his other company. Its very difficult to be able to imagine a utility where they have to take your power all over the country. Theres 50 million roofs in the country. Yep. I look, its not a shortterm consideration theyre all fine. Longer term, if the price comes down, its bad for the utilities, not good. Next, cramers mad dash as we count down toward the opening bell. A live interview with twitter cofounder, biz stone, the social media landscape. Take a look at futures here. We are looking for an applied higher open, more squawk on the street after this. Location. Location. shouting location. Heres the location that matters the most. Here. Or here. Or here. Its wherever this is. To get customers to come here and stay here, youre going to need an app that connects to all your systems. So they can bank, shop, do what they need to do, and you gotta do it fast. Before the competition does. Its tough out here; you better be on the right cloud. Today theres a new way to work. And its made with ibm. All right. Seven minutes before the opening bell. Time for mad dash. Rbc raises dish, target from 69 to 81. This has been a phenomenal stock, talking about spectrum, spectrums worth more. People are worried about verizon and how much verizon has to spend. And at t. When you watch the numbers in the auction of spectrum, rise well beyond what many people anticipated. David, what i want to know is, is dish in the cat birds seat . Chatter seems. Value of the Spectrum Holdings going up as a result of what at t, verizon, perhaps another bidder, maybe dish, buying some. But what theyre willing to pay for the up and down link. That being said, the question becomes, when will they be able to some way realize the value 0 of the spectrum . What transaction do they do that can do that . Charlie ergan may have one number in mind but it doesnt mean someone may buy it from him the Balance Sheet constraints of those that would do is almost impossible, unless something out of the box. Soft bank . Ooh softbank i dont think so. Sprint you cant discount what you cannot discount is dish and sprint getting together. Right. Or dish and tmo. But we dont know what hes got coming. It all goes in his favor, though, again, some people saying, all right, but now youve its getting overheated. But down here you have always been malone, you know, you got ergen, shes guys are largen than life figures, right . Big think guys who create a lot of value. No doubt about it. Weve got to get to eamon javers in d. C. Sure. More on secretary hagel and the reports that hell be stepping down. Yeah, thats right. Nbc news confirmed that secretary chuck hagel, secretary of defense, stepping down, under pressure here. Expecting an announcement possibly from the president later on today. The question here is, what is the impetus behind the decision for chuck hagel to step down . Obviously a republican senator who built a rapport with the president when he was in the United States senate, then brought on by the president as secretary of defense to manage the drawdown of troops in iraq and afghanistan. But with the rise of isis and regiggering of forces in iraq and afghanistan, the decision late on friday to extent the u. S. Presence in afghanistan, all of that sort of changing the way the pentagon is going to be focused over the next couple of years, clearly the president deciding now to make a change. Chuck hagel will be stepping down as defense secretary. No word on who his successor might be. Well be working on that throughout the day, guys. Thank you. As he just said, well be following. Opening bell, four minutes away. Stay with us on squawk on the street. Oh what fun it is to ride. Get the mercedesbenz on your wish list at the winter event going on now but hurry, the offer ends soon. [ho, ho, ho ] lease the 2015 c300 4matic for 419 a month at your local mercedesbenz dealer. I am an electric crew foreman out of the cupertino service center. I was born and raised in the cupertino area. Its a fantastic area to work. The new technology that we are installing out in the field is important for the customers because system reliability i believe is number one. Pg e is always trying to plan for the future and we are always trying to build something stronger and bigger and more reliable. I love living here and i love the community i serve. Nobody wants to be without power. I dont want my family to be without power. Its much more personal to me for that reason. I dont think theres any place i really would rather be. Youre watching cnbc squawk on the street. Live from the Financial Capital of the world. Opening bell ringing 50 seconds from now. I feel awful about the United Technologies story. People have to understand, news like this happens. I respect that man, who has departed, mr. Chenevert, who is doi