Several big names set to report earnings this week including the likes of jp morgan alcoa, and city. Why it could lead stocks higher. Plus a rough day for tiffany. Why disappointing holiday sales are weighing bigtime on that luxury brand. And merger monday has two very big deals in the pharma sector. What big names are teaming up. First up though after a volatile week for stocks, the markets are bracing for the beginning of earnings season. Alcoa set to report after the bell tonight. Oil continues to fall after seven straight weeks in declines. Goldman slashing its threemonth forecast for brent from 80 to 42 and wti from 70 down to 41. The firm says it needs to stay near 40 for most of the year. Half of this year before it would keep capital sidelined. Actually theyve got a great count showing that its actually falling faster than it has in almost every other oil bear market. Well, it has to but at the same time when we keep seeing these Production Growth numbers that are out of these independents, we know that there is going to be a lot of oil coming in. A lot of oil coming in from the gulf. Theres a huge glut in gasoline. Were trying to send the gasoline anywhere we can. Thats part of the problem. By the way, last week it got very cold. Huge glut in natural gas itself. Natural gas didnt even spike on the polar vortex. That just shows you we are wellsupplied. I agree with the goldman call but he was to bullish to begin with. The interesting thing is they downgrade slumberjay. Ive been saying i said to david last week and you were not here that until we see all downgrades, youre not going to get a bottom in the stocks. I thought that goldman made some good points in terms of where it can bottom. But the idea that its going to come back next year forget about it. What about the idea of capitulation and weve got these guys coming lower and lower. Isnt that a sign that were getting closer . Slumberjay traded july of 2013. You pointed out to me six, eight months ago you had a lo of these stocks. These were way too high. When Morgan Stanley put out a note about the super cycle of sand august 27th they put out a slumberjay, this is it get onboard. You cannot keep these stocks where they are on the buy list if youre using a commodity price of 40. Even as they cut, they actually up chesapeake to a buy. I mean, come on guys. Get negative on everything. In usa today, saying were not going to say 100 again and saying he totally agreed with the saudis decision not to cut because those 2 Million Barrels would have been made by somebody else. Keystone here venezuela is no place to put their oil. Then what happens . The amazing thing was that last week, nordic american tanker, the largest tanker company, raised their dividend rather substantially. There are a lot of hedge funds betting the things will be better. Well, hedge funds have been wrong so many times. Maybe this is just another bad call. One of them is going to be im not sure which. Being long on the dollar or being short oil. Somethings going to work out again. Yes. As it always does. Its the velocity of declining oil that is freaking people out. You have people selling almost everything other than health care. Theres so much good news in health care. Well get to that in a moment. Tiffany cutting its outlook for the full year this morning, ending january 31st. The ceo calling sales for the Holiday Season disappointing, including weakness in japan, 1 drop in u. S. Comps. Different story for lululemon, raising their guidance for the current quarter, citing improving trends and what it calls strong holiday results. Weird that tiffany would see the most weakness in the u. S. People are saying maybe the strong dollar is hurting tourism here. That would be something. Really really bummed out by that minus 1 . U. S. Has been very strong. Everyone expected japan minus six. Really incredible was that euro was plus4. So they were having strength where no one else was seeing strength. The high end has been terrific in this country, so perhaps theres some execution issues. Tourism could be hurt. But were just not seeing enough tourism to be hurt for me not to question the execution. What happened . There were a bunch of operators last week five below, terrible execution. Bed bath not that great execution. So were seeing some of these Companies Just not doing well because theyre just not selling right. Macys wasnt as bad as we think. Theyre doing a lot of restructuring. Jp penney jcpenney, the high point. Lulu now theyre raising. My travel trust likes lulu. The onlyists got so bearish on it was almost hard to believe that they conn make the number. This was quite a big upside for lulu. And finally they beat numbers. I think that 6 to 7 comp was quite strong. 71 earnings could be some raw cost declines there, too. They had to go a lot of people got negative lulu just like they got too positive oil. Youve been a fan of burlington coat. Raising guidance. Yeah burlington coat, that also tells me do not be short deckers. Because why . Because ugg i think is having a very good christmas because things are cold and they even got lucky on brady, their spokesperson. But still, i find tiffany a bit of a conundrum. Listen, the stock has done quite well over the last year and a half or two years. But they have executed well. I have a hard time understanding exactly why theyre seeing the weakness theyre seeing. Particularly given the divisions we talked about where the high end has oftentimes performed so much better than the middle to low end. I think conundrum is the right word. I like the idea that it could be tourism, just because i need some i need some reason. I mean this company has done it right, right, right. And then suddenly, they blow it. I dont know, doesnt make sense to me. Anecdotally, given i start my day at the nyc surrounded by tourists, then goii go to 30 rock, surrounded by tourists. I guess im not asking them if theyre going to tiffany. But it doesnt appear at least according to my eye, my welltrained eye thats sometimes better than facts. Dont let them get in the way. I know. I see a lot of other guys get in the way. I do my quick tourist updates every day. Take a look ask them how theyre doing, enjoying new york. This was very bad. And i think its going to make people shutter at the highest end, although we know Restoration Hardware just reported a terrific quarter. I think those who buy jewelry at tiffany would be inclined to go to Restoration Hardware. Doing quite well. Yes. Meantime, what a remarkable weekend in france. A million and a half people marching throughout the city. France ramping up security measures after last weeks attacks. Were live from paris with an update this morning. Good morning, hadley. Reporter good morning, carl. In france today, we are on a high terror alert for a sixth consecutive day. 3. 7 Million People marching yesterday across the country. We have 10,000 security personnel right now securing sensitive areas. We also have Something Like 5,000 security personnel, were told theyre protecting jewish schools in france. You have to also remember that there were 50 World Leaders here just yesterday linking arms walking together in support of whats happened here in france. We saw millions of people on the streets arm in arm. It was so clustered here that it was very difficult to move it took hours to get in and out of this area. Representing the United States was u. S. Attorney general eric holder. He did not attend the rally, but he was here meeting with counterterror officials. He announced the white house will hold a Security Summit on february 18th. We also know that secretary of state john kerry is planning to arrive on friday so we can expect to hear a bit more about those new security measures as the week progresses. Carl . Thank you for that. The secretary of state in pakistan talking to the leadership there. When we come back pharma taking center stage. Also ahead, John Lechleiter looking to overcome patent operations. A live interview on a very big day for pharma. A lot of conferences today. Take another look at futures. Good action after the dow. Was either up or down triple digits every day last week. First full calendar week since the summer of 2013. A lot more squad on the street from post nine in a moment. T say thank you enough. You have made my life special by being apart of it. everyone cheers glad you made it buddy. Thanks for inviting me. Thanks again my friends. For everything for all your help. Through all lifes milestones our trusted advisors are with you every step of the way. Congratulations thanks for helping me plan for my retirement. You should Come Celebrate with us. Id be honored. Plan for your goals with advisors you know and trust. So you can celebrate today and feel confident about tomorrow. Chase. So you can. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Drug maker shire announcing its biggest acquisition, buying nps pharmaceuticals. 5. 2 billion in cash. Also swiss pharma giant roche, for more than a billion dollars, and weve also got Amerisource Bergen for 2. 5 billion. All cash tender for that company. So were busy this morning with health care and health carerelated. Nps announced yesterday. Shire was going to be the biggest deals of 2014 until they said no were not going to do it, after treasury changed its rules on inversions. They backed away. That deal continues, of the big inversion deals that were announced back in 14. But shire saying okay were going to start acquiring again. Left at the altar, perhaps, the likes of assailics. But, you know a nicesized deal. The premium, not that large to the stock price recently but the unaffected stock price quite high because there was speculation about this. Right. I have dr. Francois nader on tonight. Hes been a frequent guest on mad money. He has this short bowl syndrome drug. Its the drug that nader introduced me to. Its so people can have for lack of a better term normal lives. Theyre not attached to some sort of device that makes it so they cant work. When i look at nader, what i think hes done is say you, health care main nance companies, we will come up with something that is cheaper than if you had to provide lifetime care, but its going to cost the system a lot of money, and thats what i think shire wants to do. Techmyra has a merger today. Bristol myers breaks up a drug trial on the kurg of lung cancer. I hate to use the word cure and lung. Curing of lung cancer. I hate to use the word cure and lung. Merck, same thing. There are so many deals in health care. Again, part of this Jp Morgan Health care conference. Yes, it is. The biggest deal of last year allergen and activist. Theyve already gotten signed off on by the ftc. They raised numbers this morning. I mean this guy, this is some stock that hes gotten. Brent came on mad money and said he was going to do what i thought was an outrageous number. Hes already beaten the number. This guys for real. I know a lot of people feel like its just a rollup. David pyatt, who soled allergen to him, didnt think its a rollup. He didnt, although i will say valiant is 153. 5. These Drug Companies are making so much money. What a business right now. How is it that you end a trial early on a pd1 inhibiter because it met the end point . Ive rarely seen that. Its up 6 . Everybody whos in the other get out of it. Weve got to give you the real drug. Because the real drug is working. This is a very big market. People forget. Lung cancer is the largest cancer and this is amazing. Merck says merck has something, too. All these companies are on the verge of theyre doing this personalized medicine. The results are Getting Better and better and better. Were seeing it in many different companies. You know agio the stock goes up plenty. Im talking to a lot of companies this week because what theyre doing is making it so that theyre not using chemo therapy. And chemo therapy is going to look like bloodletting in the end. They had put themselves up for sale. There was, it seems, a process. That has been confirmed. Not expecting anybody to come in over the top there. They do have a date when theyre going to hear from the fda on a drug. But that is even if they get turned down on this nat par, i believe at least delayed in october and goldman downgraded. That was wrong. But it doesnt appear to be a merck situation. No not at all. By the way, Brent Saunders is on today. The activist. Nice. And again, the stock will go up again. Im just telling you. That guy is fabulous tv. Told me this guy is a good guy. Didnt want to sell to anybody. Said saunders is a good guy. Lets watch them with scott widener. Think they put that in their bio . Hes the Kam Chancellor of drugs. Im not kidding. He can leap over anything. Meanwhile, video streamers were in the Winners Circle during last nights golden globe awards. Amazon won globes for the first time with transparent, that comedy drama series about a transgender father taking the award for best tv series, musical, or comedy. The shows star Jeffrey Tambor won for best performance in a tv comedy series. Kevin spacey among the other winners of the night, taking home the golden globe for best actor in a tv drama, of course for house of cards on netflix. The two lead a night where streaming outshined the major networks. In fact, the four major networks, as we like to call them didnt win any. What a night. Now, one of my favorite moments was on the red carpet. I dont know if you caught it. When George Clooney had people test out casa amigos. He is selling that tequila left and right, and so am i. Its become our most popular tequila. I know theres some big beer and Wine Companies that want to own that. Im just going to play my cards right here. I was so jealous of brady until i saw clooney. These are people you must be jealous of. I know jealousy is a sin. But do these people not have everything . Do they not have anything . Is there anything they dont have . They put their legpants on one leg at a time. No they do it two legs. Heres a quick piece of sound. I want to thank amazon jeff besos. To amazon my new best friend. I want to thank netflix for their incredible support of this series. Ted. All of you guys have done an incredible job. It is a new world. Theres no doubt about that when you dont see any of the networks getting those nods, so to speak. And netflix and amazon of course in the stream world. And how competitive it is right now. But how much great programming there is out there, and how much is being spent, by the way, by all of these networks, if you will for that content. Hard to do your job, right . When netflix comes out, thats the day when we can binge. When they do house of cards. I dont know, life stops, you just sit there and watch tv. And if its football weekend kind of like we binged on football. I do. I binged on football. Yeah. I watched more tv this weekend than ive watched in a long time. Made a lot of enemies. Meanwhile, how the affair beat game of thrones is another clip i dont watch that porn show. Hollywood foreign press, and dominic west and the actress who won, brits. These guys were all british. Dominic west where is his accent . How does he do it so perfectly . Amazing. Love that guy. English actor. They talked about it for james bond. I hope. When we come back cramers mad dash. Well count down to the opening bell. Take one more look at futures. Busy week shaping up as earnings season begins tonight with alcoa. Back in just a minute. Boy once upon a time, there was a nice house that lived with a family. One day, it started to rain. The house tried to keep out all the water, but water got inside and ruined everybodys everythings. The house thought she let the family down. They just didnt think it could happen. They told the house they would take better care of her. Always. Announcer protect what matters. Get flood insurance. 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. All right, time for a mad dash on this monday. Want to start off with the first letter in the alphabet or at least the first name we usually talk about in earnings season. Alcoa. This is a tough one. Raises it to a buy today. With street high numbers, that is not good news if youre alcoa, because now theyve raised the bar so much that i dont know if they can do it. The company has done everything it can to be much more proprietary, so price of movement doesnt matter as much. They actually benefit from a strong dollar. But i hate to see an upgrade on the day. What that says is wow, it must be really great. Raises the bar. Theyve done a miraculous job. Look how the stock has done. So lets say ive been listening to you for some time and youve been very bullish on this company for a while. I say all right, im going to listen to cramer, im going to buy the stock in the 12, 15 range. And im up this much. Maybe time to say okay, dont be greedy . By this Time Next Year alcoa is going to look very different. No you hold on. Even though i do like the company. If this recommendation hadnt occurred, i might have said listen, youre okay. But i dont want to trade alcoa. Its just not worth it. Because if the stock comes down people say oh cramer you moron. But i want you to buy if it goes down. Theyll say that anyway. Theyve called me a lot of things in my time. But they havent called me late to dinner. South western, this is very bad. They have a bridge loan. Theyre issuing a huge number of shares. This had been a takeout name 20 million shares to be able to get the Balance Sheet back. A big deal to acquire a lot of properties from chesapeake. Whats happened is that this is the beginning of companies trying to cure their Balance Sheet, and if they cure their Balance Sheet while y