Cyber monday sales were. U. S. Markets said to keep chugging higher as russia warns of a possible slide into recession. First up, apple in focus after the stock fell more than 3 yesterday. Raising their price targets on apple. One says this could be the top of the iphone growth cycle. They are relatively cautious here. We have blown through some targets. Kaiu has a sector perform. That is a guy i frankly dont listen to. I listen to people who liked it and are calling tops because a guy who has fought it doesnt have as much credibility. Im looking at the canacord note. Expecting the 200 million iphones, the merrill note. Pacific crest wants to trade apple. I believe trading apple is a suckers game. They were skeptical going into the launch of the 6. If they didnt have something mindblowing, he probably would down grade them. Didnt do it till now and missed a run. Ive got to tell you, there is talk of multiple praction. The multiple here is 14 times earnings. Ive got stocks selling at 1 times earnings that would wish they had the growth, would wish they had the dividend, wish they had the balance sheet, wish they had the new products. Tim cook has done a remarkable job. People cannot believe a stock can be this size. I remember when merck became a 20 billion company and people laughed. Thats inconceivable they could have a cholesterol drug doing 4 million sales. Turned out to be the largest drug in history. There are people who are skeptical i get that. When a stock hits expensive, i get skeptical. What about the argument these multiples now has been historically a ceiling for apple . The problem is there are various times when apple has one or two new products. Its rare they have big refresh, new products and something that could dazzle like the watch. I am looking at a world where the competitors, whether it be hewlettpackard, oracle, sales force. Com, whatever, these are companies and those are very diverse companies. They are valued roughly three times what apples valued at. Oracle Slower Growth is valued similar. It has to do with the way you look at companies and decide what theyre worth versus the s p. What they are worth versus technology. Most of the sox index are all more valuable right now in terms of a multiple basis than the Number One Company in the world. Im not buying it. I do like the merrill note that talks about the size of this iphone 6. When we look at the amount of whats being bought this year and we talk about the National Retail federation, i dont like their numbers, they dont include apple. I dont know how they are trying to figure out what apple is doing. Apple is a gdp factor. You mentioned the merrill note. They raised their iphone shipments to 200 million to 195. They mention the watch which they say could surprise on the up side 10 say theyll buy one. Of those 1 3 say theyll spend 500 or more. Right. The watch we first saw reminds me of a canal street watch versus say that bright one in the ad, the airplane ad . That guy does well at the conclusion of that ad. I think the new apple watch that im hearing about is a dazzler. This is going to be a watch you are going to say i want it for valentines day or my birthday. Its a giftgiving watch. Apple needs that. I asked for an iphone 6 from people. I got pushed back. How about an iphone 5. No. When you have a holiday present you ask for a 6 not a 5. The watch may be apples tiffany gift. Why arent you saying dont get greedy . Ring the register . 50 . Thats easy to say. Youre absolutely right. A lot of times ive said, im done. Its because i felt the valuation was really stretched. I didnt want to pay a market multiple for a stock that is not a market multiple. It is so easy. Ive seen it done at dow 12,000, 13,000, a lot of people say, im out of here. Im not out of here. Am i less comfortable at 715 . Yesterday we had a flash crash in apple. It was almost as if the machines went nuts. It was a transformer terminator moment. The stock recovered. The notes are good. Maybe it needs to stall out a little bit. Thats okay. Until we see the actual watch. We dont want that canal street they look good on the surface. You know that 10 watch . Now i think when they have the real watch, its going to blow us away. Cyber monday is in the books. Adobe says total online sales rose 16 from a year ago. Ibm digital analytics says sales up 8. 7 . Retailer says mobile accounted for 70 of its traffic between thanksgiving and cyber monday. 1. 5 billion hits on walmart. Com. Walmart ecommerce was here yesterday on squawk on the street. We are thinking as the Holiday Season as part of that. This is the big season for us. We are counting on shoppers continuing to shop through the Holiday Season. Cyber monday is a big day. More deals coming for the rest of cyber week. Those ibm numbers are interesting. Numbers are good, spending was flat per order. Was still 131 or so. I use the numbers from ecom. This is sector and sovereign research. Talks about black friday reads are limited utility. Literally, this is a piecess con which says like a College Thesis which says what you thought about National Federation of retailers is just wrong. Its not valuable. Youve got to use the new methods of valuation. I think online sales were outrageously good. Skechers on last night. They had a 9 million singles day in china. Take a look what skechers told jim. We have a huge Online Business with everybody we sell to. In the aggregate our Online Business we did 9 million in one day in china online last week, two weeks ago when they had that singles day. We did 9. 2 in one day online, which is incredible. Our Online Business is enormous. They have big numbers. The journal has a piece today about the notion that its not so profitable to do Online Business, but it did have a couple of companies doing well. Skechers makes a fortune online. Its fantastic from them to you business. They have show rooms, the stores. Theres a lot of wholesalers that make the nice profit on it. They are saying cyber this weekend that friday was gigantic. That stock is very cheap. David berman interviewed by david faber talked about it being cheap. This is famous in a bull market for foot wear encompassing nike and armor and dsw. I would not bet against dsw here. The times has a nice piece on amazons ambitions selling music and books almost free to one day beat your pipeline for everything from milk to cookies to food to you name it. I love that piece. You have the journalists. I read the first paragraph. Amazon is losing it. Second paragraph said no, no, they have chosen to lose it. I dont care for the stock here because this cannibalization is something people arent ready for. That is something amazon is in control of your life in everything you do will be amazon. Very clever depiction of how amazon could take over the world. Then fedex today adding it to the us1 list saying fuel prices coming down. Their fuel surcharge will go away with a lag. Not to mention two rate increases in the same calendar year. The stock when they went from 89 they reannounced a bad number. Then went to 84. The second one went back to 89. Then its been a Straight Line since. Overnight packaging which we felt was a real worry, turns out people werent wealthy enough to have that. The piece has a lot of gravitas. This cyber weekend was off the chart. You think the trading down in terms of premium shipping, that chapter ended . Yeah. The great reception produced a lot of people with a mindset like our parents or grandparents which was like weve got to return the bottles and cans. Nickels and dimes. Now what people are doing is being extravagant again. That is fedexs big profit margin. I like that stock. I liked it for a long time. Dont put me in the john johnnycomelately Merrill Lynch camp. People are raising the price target. You cant play amazon because we dont know what they are doing. Now suddenly we say, wait a second. Our way to play amazon is fedex and its going higher. You prefer that . I prefer my Charitable Trust buying ups because its not as bad as people think. Ups missed last years christmas so badly. They did preannounce already. It was horrible. Ups is such a great company. I would not bet on them to get it wrong again. All right. Thats good. That is a nice order of preferences there. There is fedex versus ups. Falling oil prices resulting in bad news for russia. The rword is popping up. Also ahead, former best buy ceo Brad Anderson. Take one more look at the premarket. Not looking too bad on a tuesday. More squawk on the street. Oil prices back on the decline after rebounding after fiveyear lows. Russia warns it expects its country to fall into recession next year due to Falling Oil Prices and sanctions with ukraine. His popularity is still at 85. Theyve got the i dont care attitude. Last night i talked about what are the things that are going to go wrong. We did have in 1998 our banks much more linked with russia. Its possible that they could go down, so to speak. There is a general consensus this is a rogue country. Its not something you want to have more fire power. Anything against putin is positive for the west. When i read that i think, okay, you know what . Good luck to you, partner. What do you make of the number of hedge funds . Also the notion a lot of financial obligations are backed by oil as collateral . I think you are seeing the stocks down. If you look at the size of them. Exxon can buy all the refinancing tomorrow. What you have right now, you have the big guys have this fantastic balance sheet. I had Boone Pickens on mad money. They need Production Growth and can get it in america. They can refinance the high debt. Im not as concerned about what can happen with oil. When it comes to hedge funds, i said last night, listen, first 10,000 or first whatever percentage, index funds. Maybe you can then find the apples. People who want to buy stocks have to learn one of the best ways to buy them, look at a multiple and figure out what stocks are cheaper. This is an index fund year. A lot of companies are going to find it hard to justify their existence. Dudley on the tape yesterday argued what happened to oil is a net positive for us. Those who want to color it in a negative scheme probably are looking to the wrong place. When you go over the supply figure, this is one of those its a rare moment where the statistics for when you get the statistics, i was looking at november 24th great count and supply numbers i get from propriety surfaces. The amount of oil we are pumping versus three months ago is so step function up that you can understand why the worlds being flooded with oil. Being flooded with our gasoline. This is not a Saudi Arabian story. I think they want to stop that. We are pumping like mad. Our rig count is up dramatically from last year. Some of these companies are 4 and 5, but i did have magnum hunter on and they moved aggressively into natural gas out of oil. They sold 750 million of Oil Properties in the balkan that the ceo was saying, thats now worth about 250 million. Magnum hunter has a lot of financial wear with all. They do have preferred yielding 10 and 11. I do think that there are a lot of companies that wont make it. The size of the companies are dwarfed. It reminds me of in march of this year we had a dramatic click decline in the cloud names. People started comparing it to 2000. If you added up the cloud names worth less than cisco, lets keep perspective. That is a nice parallel. We have been reading reports of a mega glut for months. Howard hamm said im taking my hedges off. Hes a billionaire. If hes unhappy, its his own darn fault. I like harold. Another says its going to 60s. I want to know what he says trying to get it back on. Brian sullivan, excellent reporting. Our wells, we have a lot of wells at 40. When you can hedge out 75. Any time i can do that trade, ill do it. The only companies that are going to stop drilling are out money. The other guys will keep drilling. They want to maintain their market share. Its not just the saudis. Things are good. Well get cramers mad dash as we count down to the opening bell. My baby drove up in a brand new cadillac my baby drove up in a brand new cadillac look here, daddy, im never coming back discover the new spirit of cadillac and the best offers of the season. Lease this 2015 standard collection cts for around 439 a month. Im all about free travel, babe. Thats what i do. [ female announcer ] fortunately, theres an easier way, with creditcards. Com. Compare hundreds of cards from every major bank and find the one thats right for you. Creditcards. Com. Its simple. And find the one thats right for you. Once there was a girl who even in her laundry room. With downy unstopables for longlasting scent. And infusions for softness. She created her own mix, match, magic. Downy, wash in the wow. Lets get cramers mad dash. This is a brilliant deal driven by t. J. Rodgers, the incredibly smart ceo of cypress. The man has been putting out fantastic new products that havent revealed it cost him a lot of money. They merged with spansion. If you go to their website has batteryfree technology. They do micro controllers. This is a trade driven by the internet of all things. Thats what this is about. It reminds me of rf micro and triquent. Buy cypress. T. J. Rogers creating tremendous value. I love him. I love the stock. 15 target. Fantastic merger. They are going to take out 100 million in costs. The guy is a brilliant guy. This is a brilliant transaction. Good size deal. Meg terrell was talking about biogen today. Yesterday biogen is telling people to buy it. The competitive ms drug from novartis did not show up good versus biogens ms. Even more important, biogen says they may have an alzheimers situation. Historically been very difficult to develop something that stops the plaque of alzheimers. They have early stage reading that indicates they are not the only one. There is a deal by Japanese Company for avnr that has a blockbuster potential for alzheimers. Biogen is a fabulous stock. Anybody who had them on, knows them. Loves these guys. Meg is close to biogen because of the ice bucket challenge. Is this a highly specific story or the gileads and celgenes going to get chased . Regeneron is going to 450 in the cholesterol formation. And asthma formation. Celgene is a very inexpensive stock. They put together a franchise that is the idol of all big pharma, small farmer and janet yellen who famously said to sell. I am kidding, but that was the bottom in the group. Janet yellen, never talk about stocks again. You will never let her live that down. Im crazy about her. I didnt mean it like that. I think she is doing an incredible job. She called the bottom. Her buy the sell call in biotech may be as bad a call as i have ever seen in 2 my lifetime. Well get the opening bell in about four minutes. You know how fast you were going . About 55. Where you headed at such an appropriate speed . Across the country to enhance the nations most reliable 4g lte network. Hows it working for ya . Better than ever. Howd you do it . Added cell sites. Increased capacity. And your point is. So you can download music, games, and directions for the road when you need them. Whos this guy . Oh thats charlie. You ever put pepper spray on your burrito . I like it spicy but not like uggggh spicy. He always like this . You have no idea. At t. The nations most reliable 4g lte network. You are watching cnbc squawk on the street. Opening bell in less than a minute. Auto sales on the way. By the way, first day of the month, weve not had a positive first day of the month across the board since july. Remember when that was the norm . Yeah. I think we had a very powerful markup. Almost as if someone had fiscal year that ended in november and moved stocks up on that light friday. Then just came if and we had that, like i said, the flash crash which i found to be very phony. You know what . Friday was phony, too. Phony minus phony equals nothing. Unbelievably, the dow still has not had two days in a row losing since october 16th. That is incredible. Theres a look at the s p at the top of your screen. The opening bell down here at the big board, brazilian ironore nickel producer. My Charitable Trust stock owns that. Worst stock i ever owned. If i bought jerry vail futures, i would have done better. Ldrh doing the honors. Phil lebeau has auto sales. More impressive numbers. This time its from General Motors november sales increase of 6. 5 . That is well above the edmunds. Com estimates of 0. 6 . General motors says it expects the Industry Sales pace for the month of november to come in at 17. 1 million vehicles. Earlier this morning chrysler said it expects the Industry Sales pace to come in at 17. 5 million vehicles. Its clear at this point that we are looking at november sales likely to be the strongest since november 2003. Back to you. Unbelievable. Its gas guzzlers. People are buying the ones with gasoline where it is, they are going back buying those cars and those light trucks that do eat a lot of gasoline because gasoline is cheaper. This is happening instantly. I know this from marathon pete. They are one of the largest gasoline station companies. This is the profitable stock. These stocks are way too cheap. Ford does not have the cars. Mark fields has been dealt a hand there gm is in my Charitable Trust. Maybe gm can do better. I didnt mean to make fun of the vale guys. Im hoping they will hold five. Im sure they forgive you for that. Ford down 1. 8, estimate down 1. 4. People were talking peak autos a few months ago. They were so surprisingly wrong i should dig up who said that just to throw mud to end the year. Heres mud in your eye, clowns. You dont think its because of the elongation of loan cycles . The problem of gm and ford has been europe and china. Numbers in the United States have been terrific. The reason these stocks have been bad has nothing to do with the United States. We think of them as u. S. Companies. They are so germany had minus 2 sales for the last month. Youve got to have europe. People say europes got to come back. Thats why you buy ford and gm. These are Big International companies. These are not local companies, for heavens sake. Your biogen will be the