1. 97. Our road map begins with a rally in the markets. Coming off a volatile day. Futures in the green. Adp numbers higher than expected as well. Jcpenney is feeling the holiday cheer. The stock is up nearly 20 in the premarket. Bill ackman is still unimpressed. The shooting at a paris office of a satirical magazine has left 12 dead. Well continue to bring you developments on that. First up, futures up sharply as the s p and nasdaq look to snap fiveday losing st the s p is in the midst of its second worst threeday losing streak to start the year since at least 1950. Oil prices also higher after brent fell below 50 for the first time. Ahead of the friday jobs number, adp 241. Not bad as theyve realized december higher. I dont know. Blankfein on squawk today. I thought the adp was interesting. Looks like the firings in the oil patch are either not impacting or theyre just not as great as we thought. I also felt that when i looked at the difficulterent earnings we got, we got some good ones. Not what necessarily people expected. I do want to see the oil numbers. I want to see the inventories. Theres a lot of factors. Theres no place to put the oil, but we got some interesting spending numbers last night. Rbm, which is the outfit i use that does the absolute best oil stuff, theyre not cutting back on the infrastructure spend. Theyre just cutting back on the drilling budget. I dont know. I mean we had a continuation of a rally that started yesterday afternoon. I typically dont like up openings, but we were rallying yesterday. Theres a nice follow through. Do you think that we start to not worry as much about the macro as we start well were not that far from earnings season. Were getting some numbers. Jcpenney perhaps others will follow with what may have been a better than anticipated Holiday Season for brick and mortar. Well see. Expectations for jcp were not that high so not hard to beat them. Youre talking about the average household is getting a huge 1,000 windfall. Think about it. Where does that come from . It doesnt come from government. It doesnt come from a tax cut. Doesnt come from the government borrowing more. Onethird of it comes from opec. Theyre writing a check to us. Thats not so bad. Another third comes from companies. Trade deficit numbers today, right . Narrower again. If we can get 1,000 well its going to be about 200 from saudi arabia a rebate. Isnt that nice . Do you mind . Take one every time. How about we mentioned black fine this morning on squawk. Lloyds point is youre knee jerk to assume the oil collapse is supply driven. Well the deflationary numbers we got out of europe are eye opening. By the way, you remember draghi would tell you its illegal for the ecb to allow this to happen which puts more pressure on quantitative easing. Bad news over there is now considered good news. I think the 770 Million People in europe are not really using more gasoline. Theyve got a different structure over there. Flows right to our country. We had a 1 pickup in gasoline use when oil first went down 20. Yukon sales were up 30 when you saw that number the other day. Those are socalled gas guzzlers. The supply thats coming from the gulf of mexico at the beginning of next month, its amazing. Theyre all coming on. So, what were going to see wti break 45 . 300, 000, 400,000 Barrels Per Day coming on. If we see oil prices go lower, it would see the impact on the market has not been a positive one. Thats been wrong. Thats also been the way its been sometimes. Jpmorgan did a lot of work on this saying it could produce a 0. 4 increase in gdp if things go right and people are misinterpreting. The only ones where weve had a declining market were when it was demand driven. Those who put out the demanddriven thesis are bears. I think its supply. I think its u. S. Dont forget, 2 million Barrels Per Day from nigeria. No place to go with that. Venezuela has no place to put theirs because were producing so much more. Youre going to see permean produce another 300,000 more. There are outlier predictions for 14 oil. You dont sound like you think thats possible. 14 . 14 . I did see that somewhere, yeah. We did go from 140 to 40. Oil is very volatile. 14 would that would be trouble. That would be. Then everybody goes bust. Thats run for the hills. What about the commodity complex . What about copper . The freight index. What about iron ore and so many of these other commodities that are at new lows. China. Thats a demand. Demands dont reflect europe. Europe is in big trouble. Yet, germany is still talking about the balance, the need for a balanced budget. Where did we hear that . Where did we hear that in this country . 1931. Hoover. Hoover in a pantsuit. Qe is coming. Its coming right . Well, if he doesnt do something in that january meeting, were all in trouble. I want to point out again the math. 1,000 rebate. The average household spent 2,912 on gasoline in 2012. Thats a good compare. That was 4 of household disposable income. Imagine what this means to have i mean unfortunately a lot of people come on air, theyre so rich they dont see 1,000. I think our audience understands that. What youre saying is the ecb meeting and the greek election the lot is riding on those two outcomes. People dont understand it, but this is you know, youve got these International Look at caterpillar, General Electric yesterday. Caterpillar totally turned around. Anybody who lays off, you feel terrible about it but this is mostly a mexican that market was taken over by mexico. That and one oil company went bust. So far not so bad. Some of my friends in texas argue those companies tend not to do layoffs during the Holiday Season, lets say. You might wait until january, the first few weeks of a new year. There will be thousands of jobs lost. Only 1 of the job growth that we have had in the last four years came from the oil patch. I know that sounds small. But if you do government spending, have private sector look, adp should have been down big. The christmas thing, that could matter. But im looking overall. The companies are pumping in order to meet cash flow. They are going to cut their drilling. The average shale well depletes much faster than a gulf of mexico well. 15 a year. So 18 months from now, youre going to start seeing upward. I dont know if we go to 14. If we get a really bad inventory number, its going to go down. Meantime we have at least 12 dead in a shooting at the paris offices of a french satirical magazine. As a result, france raising its antiterrorism alert in the paris area to its highest level. Reporter good morning to you. Highest level means extra police and military in Public Places and public transport. Also extra Police Protection for all the newspaper, television, and radio stations in the french capital. Last but not least, all the extra School Activities have been canceled in france until further notice after what seems to be a terrorist attack. This is how the french president called this event ahead of a security meeting early in the afternoon here in the french capital. According to the Prosecutors Office, two gunmen at least, opened fire this morning at the headquarter of the satirical magazine charlie hedbo. 12 people have been killed. Three people are still in critical condition. Thats the last element that was given. Just to tell you a what the magazine is, its not a mainstream newspaper. Its a very satirical newspaper. Plenty of potential enemies. Three, four weeks ago in 2011 the headquarter of the magazine was fire bombed after the magazine published some cartoon joking about muslim leaders. Just ahead of the attack this morning, they published a cartoon of the Islamic State militant group leader. Of course, its too early to draw conclusions about who or what organization could be behind this attack. According to intelligence sources, there is no evidence that this attack is linked to islamist state. This is all we now for now. But of course we will probably receive plenty of information from the Prosecutors Office in the next coming hours. So bear with us and ill get you back shortly. Thank you for that. Our thoughts obviously with you there in france. Word also that hollande will address the nation at 8 00 p. M. Local time. I think the only thing that will get germany moving is a rightwing movement that theyre fearful of. The National Front is going to pick up a huge amount of votes in france. That is who germany is fearful of. Thats who merkle fears. They dont fear deflation. They fear political unrest. And this action which is horrendous, is going to boost the National Front. Believe me thats whats going to wake up merkle. Wouldnt mind bouncing that off our chief International Correspondent, Michelle Carusocabrera, who has been covering this news all morning. Weve just received a statement from president obama concerning the situation in paris. I strongly condemn the horrific shooting at the offices of at Charlie Hebdo magazine. France is americas oldest ally and has stood shoulder to shoulder with the United States in the fight against terrorists who threaten our shared security and the world. The prth does bring up a good point. The french are our oldest allies. Actually helped us fight the british during the american revolution. Once again a statement from the white house. President obama condemning the attacks, just as we have heard from many leaders around the world, including the Prime Minister of the United Kingdom and the leader of germany. Thats the latest we have from the u. S. We should also point out that weve spoken with u. S. Security officials who have been speaking with French Security officials. Its two, possibly three, gunmen that opened fire. Its not confirmed they escaped in a car, but theyre definitely at large. There are local reports in france that the men were carrying some kind of rocket launcher. They said thats unconfirmed, but it does possibly appear they were carrying punchaction shotguns and kalashnikovs or ak47s as theyre frequently called. Were be on the lookout for more details. Michelle, well come back to you later. When we come back jcpenney getting a boost from its holiday sales numbers. Bill ackman on squawk this morning with harsh words about the companys future. Then Ceo Dick Costolo at twitter selling off shares. Why was it on the upside yesterday . Market up 142 on the dow. More on squawk on the street from post nine in just a minute. It was a happy Holiday Season for jcpenney. Shares of the retailer up sharply in the premarket after it reported samestore sales up 3 3. 7 in the November December period. Although, ackman this morning on squawk saying i want them to be successful, but theyre in a very tough position. No comment about him. I think the team is doing a great job. Better than i thought. Some of its gasoline. But you know what a win is a win. You dont say, hey, listen put an asterisk because its gasoline. This company had been losing share. Its obviously that theyre spending some money now. They have a good omni channel because they have so many different stores. I think we forget jcpenney is a nationwide retailer. I go to the jcpenney in midtown here where the prices are really kind of extraordinary. You get some great bargains. Still looking for trousers, are you . I got some black levi pants there. It was like two for one. Like buy one get one. Im talking about cheaper than costco. The compares for them are relatively easy. Yes, but at the same time, remember but its up. Up is up. Pvh was a downgrade yesterday. Theyre a partner of jcpenney. Im not recommending them. Im saying that if you look at whos in jcpenney its in peril. Theyre trying to unwind some of the things that ackman notice im not saying that guys name anymore. Im not going to mention his name. He takes it personally . Or ackman takes it personally . Everyone takes things personally. Except for mike ullman. You mentioned the downgrade of pvh yesterday. But at the same time citi upped under armour. Thats more of a dicks story. I think that vp corp. Pushed hard yesterday. Vf corp. Is having a great winter. I just think that this was an impressive quarter. There is going to be a squeeze. But most importantly, if jcpenney is doing well what is macys going to put up . Theres a buy on nordstrom. Brings to mind that story in the times this past weekend about dead malls and the website dead deadmalls. Com where you can literally look at the number of malls that are 5 10 , 40 vacancy rates. The point of that story and what weve seen is the middle market which has been typically anchored i did a sears or jcpenney has not fared particularly well when it comes to these malls. Loser take none. Restoration hardware doing incredible. They buy a lot of stuff from italy. Wouldnt you love j. Crew right here . They did not have the best quarter. They have easy compares. It has been a little tougher sledding lately. It maybehas been. Meantime, a number of twitter executives are selling shares lately. Twitter stock taking a leg higher on speculation over m a. Facebook out with numbers for its whatsapp acquisition. The twitter story is interesting. Ross levin sonson on the half yesterday suggests a tieup. Then rob pack whos my favorite from sun trust, totally runs with it and gives you why it could happen. Rob told you to buy it on the underwriting then told you to sell it in the 70s, then buy it back down here. I got no problem. Meantime, they keep selling stock. I think he exercised over 400,000 shares. It would be really interesting to see him short his own stock. No, he has a ton of stock. He has a ltd. Ot of stock, but he does keep selling, which is perfectly his right. There was also some rumor icahn is in the stock. I have no idea if thats true. I havent been able to disprove it, but im doubtful. Lets leave it at that. Dick costolo, i kind of feel like the jcpenney its getting touchy. I dont want to get personal. When i say he should go and a new ceo will come in its not personal. Its just business. Although, some directors are starting to come to his defense with blog posts saying theyre committed to his tenure that kind of thing. Oh are they . Good. When we come back well get cramers mad dash and count down to the opening bell. One more look at the futures. Not bad. If the month ended today, it would be the s ps worst month since last january. Well see what happens. Squawk on the street is back in a minute. First impressions are important. Youve got to make every second count. Banking designed for the way you live your life. So you can welcome your family home. For the first time. Chase. So you can. Ugh. Heartburn. Did someone say burn . Try alka seltzer reliefchews. They work just as fast and taste better than tums smoothies assorted fruit. Mmm. Amazing. Yeah, i get that a lot. Alka seltzer heartburn reliefchews. Enjoy the relief. Welcome back to cnbc. Im Michelle Carusocabrera. The Associated Press quoting frances top security official, who confirms now three gunmen carried out the deadly attack on the french paper we have been covering this morning. Earlier reports suggested two gunmen. Weve been getting indications perhaps it was three. Now were told by frances top security official it is three gunmen. There has been a horrific terrorist attack in paris this morning. 12 people are dead including two Police Officers who responded to the scene when they heard the gunfire. Thats according to nbc news investigations. 20 people are additionally injured, three of them critically. Apparently they entered the location wearing hoods. They were captured on video by one local journalist shouting allah. The location was the Head Quarters of a satirical news a magazine called Charlie Hebdo. Very well known for satirical attacks on political and religious groups and had lampoon lampooned the prophet mohammed many times. Again, hooded gunmen apparently entered their news room or their facility and carried out this rampage. Whats unclear is where are they right now. There are reports unconfirmed that they escaped to the paris is up ush suburbs in a hijacked car. So far, frances Security Officials are not confirming that at this point. It does appear there is some kind of man hunt going on. Were still waiting for details. Back to you. Thank you very much michelle. From that we get to a mad dash. So disturbing. It is. Okay. Micron. Svu did really well. Jcpenney. I hate to just focus on the down here for a second. Micron disappointed on dram and nand for flash. People were expecting much better. This stock has been a horse. I think its really profit taking. It has a history of selling down and then you buy it. I wish they did a doover on the conference call. They didnt mean to be as down beat i think. Any other stocks that conceivably people say sandisk. Im excited to see sky Works Solution is not going down but going higher. I dont want to draw too many conclusions. The Semiconductor Group has been very strong. All right. We have the opening bell coming up right after this. Female announcer its time to make room for the new mattress models during sleep trains huge year end Clearance Sale, get beautyrest, posturepedic even tempurpedic mattress sets at low clearance prices. Save even more on floor samples, demonstrators, and closeout inventory. Plus, free sameday delivery, setup and removal of your old set. Why wait for the new models . Sleep trains year end Clearance Sale is on now . Guaranteed your ticket to a better nights sleep youre watching cnbcs squawk on the street live from the Financial Capital of the world. The opening bell in just a want a minutes time. S p is down five days in a row along with the nasdaq down 4 in that time. We havent had four days in a row down all year long. Then finally, boom. But there is a lot of evidence that when you have an opening three, f