Crude oil does figure very prominently into the movements of our market. As you can see, wti down again. Not a great deal but down again this morning. As for the tenyear note yield hovering around amazingly enough that 2 level. That is exactly where we find ourselves at weekend. The first full trading week of 2015. We are going to have more on the jobs report in a moment. Our road map starts with continuing terror in paris. Multiple hostage situations unfolding. We are going to bring you the latest details throughout the show. Here at home the december jobs report comes in above forecast. Well get the administrations reaction from labor secretary thomas perez. First on cnbc. Nelson peltz launches a proxy fight for four board seats. Jim and i both will have more on that impending battle. December jobs report shows nonfarm payrolls rose 252,000, above forecast that were around 240,000. Unemployment rate down to a 6 1 2 year low. It is now 5. 6 . Some of the decline reflected people leaving the labor force. Average Hourly Earnings fell down 0. 2 . Here is how chicago fed president Charles Evans reacted to the wage numbers on squawk box this morning. Earnings growth on average its been 2 to 2. 25 now its lower for average early Hourly Earnings this morning. I think if we are going to get inflation up to our 2 objective and its now 1. 5 less than that, we have to see wages increase more. Thats indicative of one of the dilemmas we are facing. Thats why im in favor of being patient on raising Interest Rates. Mr. Dove there. Earnings decline. That is not supposed to happen. We all took those courses. When you get a tight job market, wages are supposed to go up. They are going down. Its got to be great concern because wages at the top arent going down. There is a tremendous disparity between people who make money at the top, executives or capital and labor. Its widening. It should be tightening. The winnertakeall society we all learned so much about in recent years. Why do you think thats occurring . As you point out, its somewhat surprising given tightening labor conditions. 5. 6 on Unemployment Rate. We talk about Participation Rates, but that is disturbing. Free trade has a lot to do it. You can pay an auto worker 22, go down south to mexico and pay 5. 50. Everybody is under pressure to try to keep their job. Labor has lost a lot of negotiating power because jobs are fungible. We have trade agreements with every country. Im not being political, just imperical about it. When you look at a macys or jc penney, they are laying off. Closing stores. What do you see in the oil patch . Tremendous pressure in the last six weeks on wages. You do but at the same time weve got a strong gdp number at least last quarter. These are good numbers. 252,000 jobs. I feel as though youre being morose. Theoretically it shouldnt be. I hook at these numbers and think its finally the year its on the today show. This is the year you are going to get wage relief and make more money. These numbers are saying thats not going to happen. I think you search for reasons and have to say, nafta, free trade, these put pressure. These have been with us for decades. Nafta is from clinton. Yes. I think 20 years ago. I think almost anybody who has a Manufacturing Business can offshore anywhere. I think the Financial Services industry had been a big hirer. Theyre not hiring. Retail is hiring but not paying a lot of money. You look at the great job growth there. They were talking about kitchen staff, how that is doing. There are so many people in the labor force. So many immigrants who will take a job. This is very unfortunate. We are in a situation, people want we are in a health carebased employment situation. If you Want Health Care you have to get a job. You are willing to do anything for a job in this country. This is a big change. It is hard. Theyll do two jobs in this country. This is an expensive country to live in. Certain parts of it are. There are big divergences given that. What it means for the markets overall, november was revised up to 353,000 jobs from what had been addition of 321,000. October nonfarm jobs revised, also up by about 18,000. Unemployment rate 5. 6 . Labor force participation 62. 7 . That is the lowest since september 08. Overall, this is a good number jim. What should it mean for the market . Its great for stocks. Obviously, the fed had to be on hold. Theres no wage growth. They want wage growth. Wage growth we have 5. 6 unemployment. Thats below the average of the last ten years. Worried about inflation. Deflation is far more important right now, right . Gasoline is up and down. I see tremendous cuts in the capex, but the Oil Continues to flow. Its going to be higher year over year in terms of production, which is extraordinary. That will keep inflation down. Its an ideal situation for stocks. Thats one of the reasons stocks should not have gone down at the beginning of the year and why stocks have been incredible in the last two days. I think there is a lot here to like except if you are trying to get a pay raise. By the way, this has somehow become a politicallycharged conversation. I think people at home are saying is cramer in favor of higher wages . Doesnt he know that hurts capital. Im saying i studied economics with galbraith. He is a smart guy. Its not supposed to be able to happen. You are not supposed to have the job growth have such great job growth and wages decline. I took his seminar. He preached this. Everything i learned in school is marxism. Another education not worth what you paid for. Not at all. We have two hostage standoffs in france. Hadley gamble is outside paris with the latest. Reporter good morning, david. This is the third day of a massive manhunt in france. A dramatic series of events unfold as we speak in the village just behind me. Two suspects holed up in a printing business. They are completely surrounded by french and Law Enforcement authorities. There is at least one confirmed hostage in that building. There may be more. Five people were expected to be at work today at that principles. We understand the hostages are their first priority. They are not going to move in unless negotiations with with these two suspects totally break down. Ap earlier reporting these guys are ready to go the way of martyrs. Also in a separate incident theres been here shooting in the eastern part of paris at a Kosher Grocery store. The mayor of paris tweeting she is on her way to that scene right now. That makes the third such incident in the last three days. Three days of manhunt and three days of terror incidents. We also understand now the French Police released the photos of the two people suspected of shooting a policewoman yesterday in a terror attack in an area in the southern part of paris. They released those photographs. Police saying these two are armed and dangerous and on the loose. Thank you very much hadley gamble. Well have a lot more following those two separate instances of terrible things happening. Lets talk about big news here on the activist front. A couple of weeks ago i said its its highly likely trian two hold a fight for dupont. Interesting debate i would argue here that will take place between trian which has nominated four director for this board. Still would be a minority if they got all of them on. And the performance she has been put up and dupont have said xeeds many of what they claim is their peer group. Granted the lows they saw because the stock came down sharply in 08. This is part of the thesis is what she accomplished she had the wind at her back. You start with the right concept. Its hard. The team at duponts not terrible. They are doing a lot of things. I know peltz doesnt like how they are doing it. This isnt start out to be as difficult. Peltz does not launch proxy fights. Only done one and a long time ago. Otherwise they typically do settle for a board seat or two, which is oftentimes mr. Peltz or maybe ed garden. In this case they wanted one board seat this summer. I think it is interesting dupont was unwilling to go down that road. I think that would have solved this problem. There will be a tremendous out of energy for coleman to have to meet shareholders. This becomes a referendum on ellen coleman. Its something the board and she were willing to take on. They didnt want to put one member on this summer which would have ended this. Weve seen in so many other instances where these Large Companies roll over for the activists to a certain extent. Loeb had to. Explain how this works. The first two are index funds, okay . Next one is capital. Capital becomes very important. What happens . Does kullman make a pilgrimage . Of course. There will be a great deal of focus on the large holders. They will look through everything. The white paper we got last september from trian. Why the company should be split and they believe there is still a good deal of cost that is unaccounted for, unallocated for. Which is gigantic. Arguments coming back from document will be we met with trian 17 different times. We incorporated a lot of what they told us into the boards conversation about the strategy for the company. We listened to them. We outperformed our peers over a long period of time now. Weve done seven divestitures. We bought back a lot of stock. We are attacking costs. What exactly is it we are doing wrong . They will also, i know use things like mr. Garden had something to say last spring where he said ellen has been her own activist. Like pepsico. When you talk to the trian side theyll see the peer group is not correct. Holding Company Structure in which this Company Operates if you go back has just resulted in moving from back and forth, buying to selling with no true accretion over a long period of time for the company. Needs a different strategy. Allow us to be there as a minority on this board to listen and offer our perspective. And not necessarily to say we want the company split. Of course they are saying that. Do you believe that would create value, jim . Im not sure any more. I think getting rid of tio commodity business the way she wants to get rid of it which has a different Board Structure than peltz wants, i think is wrong. I think many of the things kullman is doing brought out a lot of value. Analysis is 80. I think dupont is a well run company, but could be better run. I would want john myhre on my board being one of the finest minds i met in finance, head of ge capital. A brilliant, tough man. Duponts board have good people. I would want john there. The trian side is why wouldnt you want myer . Did you see his background . Remember heinz, that was a board seat peltz got. When i met with mr. Johnson was the ceo when there was a significant battle and there was a coming together. I crow chuck bunch of heinz and johnson told me on mad money, peltz came in with great ideas. We were initially reluctant, but we loved his ideas. I dont know why you wouldnt want a smarter guy than you have coming in saying ive got an outsiders perspective. Especially when it was collegial. Sandy cutler had a lot of meetings. I think maybe dupont thought they were productive. Maybe trian thought they were offensive. Trian is going to claim the targets, whether longterm 7 Topline Revenue growth is not something that can be met begin the current structure of the business. They cite the fact at least ms. Kullman promised to deliver the numbers and they reduced guidance. They missed guidance several times. 14 was the year which they listened and learned. Now they are trying to hold them accountable, so to speak. I think its interesting they those to go this route at dupont and have the battle as opposed to just give up a seat this summer to mr. Gardner or peltz. If you buy with nelson peltz, you make money. You buy again. 80, worth 75 today. Ingersollrand. Look what they did. They said let us in. They had great ideas. Ingersollrand was a monster win. It crushed the s p. The relation with timken hasnt worked out. In the end fundamentals overtake all of this right . Ellen has moved the business from less cyclical into more proprietary. They made a judgment to some degree too shortsighted. Now they have to spend all their time meeting with big shareholders. That will take your eye off the ball. That was a major distraction. Let loebs people in. Management distraction and an important component which are rare for a company this size. We want to notify you about a date of delivery glitch affecting our bottom ticker there. The current prices in the ticker are correct but changes being displayed are not updating correctly. Well work quickly to fish the issues. Well continue to stay on top of the hostage situation in france. The nations largest drug store chain and european pharmacy giant are now one company. Merger resulting from walgreens and boots getting together. An exclusive with the executive vice chairman and jim skinner. [container door opening] what makes it an suv is what you can get into it. [container door closing] what makes it an nx is what you can get out of it. Introducing the firstever lexus nx turbo and hybrid. Once you go beyond utility theres no going back. Your old 401k is rolled over into a Td Ameritrade ira. Yes so no set up fees wooh yeah so i get help from rollover consultants . Wooh yes no rollover hassle. Great. Woah oh, were spiking things, robbie. For all the confidence you need. Thats better Td Ameritrade. You got this. Another look at futures. 252,000 jobs added in december above expectations. Having perhaps a minorly positive effect. There are too many cross currents right now. Theyve got a lot of earnings upgrades, downgrades. Well have more on those two hostage standoffs in france. The evolution of luxury continues. The next generation 2015 escalade. Well, a mortgage shouldnt be a problem your credit is in pretty good shape. Pretty good . I know i have a 798 fico score thanks to the tools and help on experian. Com. Kaboom. Well, i just have a few other questions. Chuck, the only other question you need to ask is, what else can you do for me . Ill just take a water. Get your credit swagger on. Become a member of experian credit tracker and find out your fico score powered by experian. Fico scores are used in 90 of credit decisions. Weve got a lot going on. We have 6 1 2 minutes before the opening bell. Lets get to the mad dash. Macys first given there is news there. Macys is freaking out. The comp stores were not blowout. They will end up Closing Stores. Obviously being compared with jc penney not as good. 14 stores being closed. Retail whether jc penney macys or pier one. They are Closing Stores because that is the new face of retail. This is omni channel which is code for amazon is killing us. The value bricks and mortar its not something to freak out about. Five below, bed bath macys all regarded as not so hot. 140 million in savings they will reinvest in Technology Talent and business development. I looked where the stores are. Obviously, close underperforming stores. They are not sitting still. He is not going to take a beating. He will continue to close stores. These are no longer growth retailers. They are like home depot. They realized dont put up a lot of stores go for more profitable stores. Its a bold action. Before you move on to other things, i would note 175,000 employees, they are saying they are going to stay level. Begin the unemployment level and lack of wage growth. They are not lowering overall employment. They are adding some and getting rid of others. You have to add to the business you chronicled so well in your amazon documentary. Thats the behind the scenes stuff. Nordstrom is ahead of everybody else except for macys. Terry lundgren is continuing to drive profitability. Thats what they want. They want great operating cash flow. Not just top line. That is smart. Bed bath wants it too. Five below doesnt know what its doing. Container story very inconsistent. Its nuts, all over the board. Pier one was very good plus 8 . You mentioned different names, all broadly under the banner of retail. They seem to be moving. The Container Store hasnt seemed to got anything right since they went public. They are claiming this quarter started is very good. I have questions about that. Let me talk about something really important. Troy alston was the heir apparent to howard schultz, stepping aside, unpaid lead. I think troy alston is fabulous. You do. Why do you think that . I met him. Great operation. Chief operating officer of starbucks. Howard was doing big stuff. This company has a great bench. I think its a shame i dont want troy alston to leave for a second hes so great. If you sell on this, you are making a very short term and incorrect room. This is a familyrelated issue. There are times im deadly serious saying this guy has to spend more time with his family. Its totally real. There will be changes coming in starbucks. Charitable trust owns it. Dont sell. Should i be concerned . Do not be concerned. Is this a stack of bibles situation . Cant, its totally business. I believed every word that came out last night about starbucks. I dont think you should sell the stock as much as i believe they wish troy would not go. He is so good. They have a good team there. We got news while weve been speaking over the last five minutes regarding the Keystone Pipeline. It appears Nebraska Supreme Court weve been waiting for this ruling struck down a lower Court Challenge or ruling that essentially will allow for it to go across parts of nebraska. Youve got the house then the senate going to vote very soon. Expect it to pass a bill saying we want this. Then the question is will the president veto . I think hell veto it. Bill mckiven i think his group will win. People dont understand the way oil flows from harvesting which is where this is from the tar sands, so to speak. Canadian companies have not been sitting still. That 800,000 a day will come here. What about the idea it comes across our country and ends out to china anyway . Theres trains pipelines. Do we need it. This is about venezuela versus canada. They are going to take Venezuela Oil or canadian oil. If you take the pipeline venezuela gets shut down. You will shut down the country of venezuela. Nigeria doesnt import to us. Where is