Well be discussing this much of the morning. Oil back with a fivehandle after the rally. First time oils been above 50 since january 6th. Road map begins with surprise surge in the swiss franc after the National Bank scraps the currency floor set in 2011. In turn volatility jumps and markets around the world. Bank of america shares down in the premarket with profits and revenues both coming in below expectations. And target best buy moving dramatically in premarket but opposite directions. Well explain why in a moment. First up surprising news out of switzerland, the swiss National Bank scrapping exchange rate. It was the end of a currency floor set back in 2011 to head off deflation and in response, swiss franc surges against the euro major currencies. The swiss markets down 9 . People wondering trying to get out of the way of draghi next week. Well, i guess so. I mean this is a puzzling move because typically you dont do something that you know is going to hurt your country dont do something without prep you dont wake up one morning and basically destroy your competitiveness. I think its going to puzzle people. I also think what its going to do is make the people who are so aware of whats happening in europe say wow, its even scarier than i thought. And i dont want to be a pollyanna but i have to ask, what does this have to do with the price to earnings ratio of bristolmyers . Virtually nothing, but it could have something to do with pricetoearnings ratio of novartis. Which is up big. Nestle must be getting killed. No other way around. All of those are up. Other than the cuckoo clock, third man, we can overweight switzerland in our minds because switzerland has played a big role historically. But this is something that i think is going to traumatize people and it is truly shakespeare. Full of sound and fury signifying nothing. People argue this morning this was not well communicated at all. In fact, flies in the face of what theyve said in the past few months. Yes. Well talk more about the swiss in a moment. Inconsistent as best buy. Breaking news regarding cuba today. Michelle carusocabrera is in new york. We have been waiting for the actual regulations that were going to be put out by treasury when it comes to announcement by obama in december about reestablishment of relations because a lot of financial changes that were going to happen. They have come out this morning. They go into effect tomorrow. I believe that means tomorrow will be the First Time Since 2004 that cuban cigars will be permitted into the United States. Only 100 worth, wont buy you many. Significant changes, most what we saw before howeverer more explicit about the Telecom Equipment allowed into the country. Theyve included software. Some people who read that suggest that because of all of the issues with secrecy, et cetera perhaps considering taking cuba off the state sponsor of terrorism list. Theyve said that cuban exiles traveling back bring as much as 10,000 worth of cash provided going to humanitarian purposes private endev ofavors as well. Questions raised by congress whether or not violation of the embargo because will that be indirect financing to cuban government expressly prohibited under law. Theres also whats called third country effects. Doing business outside the United States, things have and gotten easier if youre a bank who wants to do business with Cuban National outside cuba thats controversial, as well. From what i can tell those are the most significant announcements there nothing on certified claims. Remember, u. S. Companies have registered claims with the u. S. Treasury where theyre owed roughly what would be 7 billion worth from the cuban government which was seized by due to property seize back in the 60s no clarity whether or not anything related to that nor on all of the sovereign debt that cuba has defaulted on as well. Many hedge funds in london own a lot of the debt because they expect some point theyre going to have to do some kind of negotiation related to that. For those travelers there right now, traveling back tomorrow carl, maybe well see cuban cigars arriving legally to miami. We know theyve been arriving illegally for a long time. Policys changing quickly. Im sure not the last well hear from you. Michelle carusocabrera at squawk set in new york. Regarding all of that foreign currency stuff, Steve Liesmans exclusive interview with head of the imf, christine lagarde, this afternoon at 12 15 p. M. Eastern time. Oil going down talking about. 9 increase in global gdp, kind of drowned out by negatives. I hope she doesnt change her mind because oils up today. Moving on to Bank Earnings bank of america, 25 cents a share a miss. Revenues below consensus. Hurt by fixed income trading. Citi missing as well quarterly numbers on legal charges. Lowest eps since the Fourth Quarter of 09, lowest revenues in a year jim. Very disappointing. Bank of america, very disappointing. You know, first of all, its confusing, hard to couldntunderstand, Noninterest Income down 9 mortgage banking, book 14. 4 ing looking for relief from the government, maybe you get. Didnt pick on the government. Not talking about five to six regulators coming after them. This is not the quarter i wanted to see from bank of america. I felt this would be the quarter where you saw the loan demand like wells fargo and didnt have this kind of feel that its really gunslinger and that now theyre not going to like the temple, but thats okay you have the term that you use, the trading desk the merrill trading profits, i dont want to hear about it why im going circle back and say wells fargo when we look at the quarter, put all of the numbers together wells fargos going to go higher, not lower, because that Conference Call that quarter, was good. Jpmorgans not particularly good. Comments from jamie dimon on the call with journalists caught the most headlines. When you curse, you get headlines. I suppose. Funny, i listened to it i thought, well all right. Xrated Conference Call. He did. Yeah. Stepping in dog stuff, yeah. I guess, i guess. But, more to the point, jpmorgan didnt do particularly well yesterday, as a result of unexpected charges associated with litigation boa has had more than its share. Citi this morning, you know im curious, as to the continued reviews on the leadership of mr. Corbett. Disappointed Citi Mike Corbett had really given you clarity that maybe the charges were almost done. Obviously theres this kind of a bifurcation in this cart quarter. Wells fargo no legal, wells fargo reversal of bad loans, wells fargo ate through the bad loans of the companies they bought. Citi, im trying mike corbett was not responsible for what citi did, i thought that they would start that wed see the end. Mikes forthcoming guy. I expected a better quarter there, too. But when we saw, i guess, those salary the cuts we should have realized. Im a believer in corvette. I think the moynihan ive got to tell you, the bank stay away from financials and youll do fine. Financials are 18 of s p. A difficult time, not only citi, but bank of america, in terms of fixed income trading. Numbers, horrific numbers from jeffreys which prestaged. One wonders what well see from the like of Goldman Sachs and Morgan Stanley the personally advisory business is so important but they do trade at these firms. My Charitable Trust, of all of these, morgan i think hell deliver a clean one. I think Morgan Stanley will be clean. Wells fargo was clean, let that stock come down. When you read bank of america, these are very hard to understand so you have to do more work than i dont mean to be cursory, you have to sit down, talk to people. On the face of it this is just not such a hot quarter for banks. No. If rates went up wed be talking positive. As earnings season began, s p Bank Earnings expected to go up three year on year. Now, expecting minus two, due to poor results weve already seen. Its eye opening. The lending they dont make much on lending because of the curve. Theyre not making much money on deposits because of the yield curve. They neath need rate relief, a rate hike. I come back to wells fargo, exemplary bank they are exactly what you need. By the way, theres a line with john stumps is Energy Positive decline in energy . He says i dont know we have 70 million depositors, they pump gasp is there more to it . Right. We talk often about the major cap banks here of course. But what about the midrange mid tier banks . We havent had any consolidation, by the way, for so many years. Of course big banks are not going to be able to do anything when it comes to m and a. There is an argument to be made as we finally really get away from the crisis years already having passed we will see more consolidation anoongsmongst that second down tier. Perhaps thats where the focus should be. New bank that became public. Im close to suntrust Charitable Trust owns it theyll have the same problems Net Interest Margin bb t did not have a good quarter last quarter. Maybe get first horizon. Very good banks in strong region regions. Expect commercial will transsent but they dont transcend. Is bb t, susquehanna type deal replicated and scaled. I think theyre waiting for the government to go away. I dont know that its going to prevent them prevent them as opposed to jpmorgan wants to do something, that aint happening. Citi wants to do something, that aint happening. Talking about big personalities not going to get together. Not going to get together. Maybe you need to go down a bit, 15 billion market cap or so maybe in that range. Look, the old days used to get wells fargo up. Old days you get youd wake up and see that the third and fifth largest banks around philadelphia combine. If you look at what wells fargos saying there are few regional banks of any consequence anymore because of the fact that wells, frankly, took advantage of the Great Recession and bought everybody they needed to. Theyre juggernaut. Hard to go up against stump. When you meet stumf its forbidding thing. First thing he says he doesnt say hi he says whos your banker . I want to do your business. Really hi im jim cramer. Sometimes talking about richard sherman, you know . Right. Meet him, hard to go up against him. I love sherman. Love r. Sherman. I love him. Sent me a signed jersey. We all know. I know. People hate it. Im done talking about sherman. Hands, let me tell you until hes done winning the super bowl im not going to mention sherman. When we come back target shares on the rise but a rough morning for best buy. Tale of two retailers coming up. Markets sold off wednesday, gamestop, one of the big winners on upbeat sales new. Ceo what is working for the video Game Retailer. Premarket, 700 points off alltime highs on the dow looking to get some of it back this morning. More squawk on the street in a moment. Target shares up 4 . Exiting Canada Business after two years, saying it couldnt find a realistic scenario to get to profitability until at least 2021. Target reporting stronger than expected total Company Sales based on performance during Holiday Season. People saying good riddance store were never as good as in the states. Never made money, very important. Opened up all at once. I understand that it was actually, you look at numbers, say its a couple billion dollar loss no 7 billion loss start to finish. Equivalent of the bridge too far. This was the honest operation market garden, opened at once parachuted into canada. The whole operation wiped out. Makes sense. Talk to you for a second. Sometimes in our dialogue reporting can get lost in the shuffle. You mentioned number right now that i dont think ive heard. Nobody has. 7 billion. No. I assume a function of your reporting. 7 billion in losses jim . Previous administration of target was travesty. The idea nordstroms, go on Conference Call, opened one store this year in calgary and worried that how do you lose 7 billion with 133 stores . You cant open that many stores the infrastructure you flick a switch . No, built stores everywhere and took existing stores. This was did this well look back, the biggest blunder in history of retail cornell has well theres other good ones. What, federated allied. Ron johnson as ceo. This may top that. But that said all right that was the biggest blunder. 7 billion in losses from reporting. 2 billion its a good move. Great Balance Sheet, fantastic move. Canadas hard to understand. Major distraction. Target one of the retailers ive been saying has had incredibly good christmas. Remember they had seen q4 u. S. Up two, now talking more like three. Cornell is the tough guy, hes like eisenhower in 44, enough of this were not going to do this crazyinesscraziness. This is a very tough business decision by a tough businessman who is going to make target into what we remember target being. Great growth. This is why i said retail number, yesterday, made no sense to me because this is the kind of this is the beginning of the rerating of target. The stocks up a lot already, but targets going back to being a great retailer. Maybe a good retailer. Shrink to grow. He didnt do it. Look, last Conference Call go back, november 19th Conference Call, canada expecting better Fourth Quarter, didnt get it. To succeed in canada need a major step change in performance. The fact is giving where performing today we need improved Financial Performance for every target store in canada they didnt see it so he closed. Gutsy call. Gutsy call. Well done brian cornell. Best buy shares falling, despite good holiday comps. The best holiday comps since 2009, guide lower on margins for 2015 despite strength in televisions, jim this will get hurt today. You know, i went through the release. Are they kidding . Why didnt they somehow suggest to anyone anyone in the business, that perhaps it was even more promotional, like first line in release, it was promotional. Promotional . I mean these guys ill give them this gigantic online people say amazons losing share to them or onlines bigger than expected. But this was a major dis disappointment. And i think a lot of it had to do with the fact we thought they were having a great christmas. They gave the stuff away. Phones are going to soften post iphone 6. They did. Theres a note saying you cant buy apple here because next year wont be as good for you know trade apple. But i point out ultrahighdef tv positive note on corning, that could spur sales. I mean best buy has to communicate things better because i everyone who followed the company thought this was a breakout quarter. Not a breakdown quarter. Interesting of the use of the word deflationary. Yeah. Mario draghi and best buy management. Whether fmoc looking at that. Weak demand people not buying extended extended warranties. Domestic revenue declined 1. 5 comp declined. International down 8 . Domestic online revenue, 3. 2 billion plus 23. 5 , people buying online im have i can buy it online i doesnt have to get all of the i dont have to the gopro, buy the tv give me a gopro, thats not happening. Youre going to the website, they have a gopro. This is a company two years ago, which we were talking about as being in desire straits with stock traiting 15 bucks a share or less potential for lbo never able to get finance to happen. Right. Everybody talking about them being amazoned, two years hence, the conversation more positive with not great numbers. Theyre the show room for best buy. Because you want the stuff delivered to your door if you company the stuffs heavy. I mean heavy stuff. But, look best buy is not as dis disappointment, it is disappointing versus what we felt was going to happen and that does matter. Its a guidance issue. Cramers mad dash count down to opening bell premarket. Stocks at lowest since january 6th. Back in a moment from post nine. Strike it up i want to i want to weve got six minutes before opening bell. Quickly back to target before mad dash. Astonishing. 4. 5 billion in canadian dollars, i want to say that 2. 5 billion operating losses the parachute in canada 4. 5 billion Canadian Capital just incredible. It does ron johnsons got to be saying you know what . Im feeling pretty good today because hes more stupid than i am. Sorry to use stupid how about misinformed . Positives. Merrill lynch, short squeeze going on oil. Cash is king for oil. They think brent poised to go to 31. Oils up dramatically. Oil companies have to sell futures constantly theyll weigh on it any time it goes up got to bring cash flow. This note may mark closer to a bottom when you see someone say brents going to 31 now you have to think maybe we find a place for it to bottom. We havent talked about harold hamm continental the checks hes writing to his wife in the divorce. We didnt prepare we are were going there. Personal low 68. 7 million shares. Came on mad money, oil at 81 continental, clr, are we in a situation we could see 60 oil . He said no. I asked him again, he goes i dont believe. I think oil back at 90 before you know it. We didnt change to clr. Theyre not listening. Half right, it went to 45. Okay. Move on. Exactly. Half right. Home builders, other day, kb homes, woe is me Home Building. Lennar delivers a terrific number great. Whole group will trade unevenly but he its true but remember the mortgage numbers, wells fargo came out with yesterday the best in what eight years . So youre going to see a pick up in housing. Remember, though in the end, housing remains in recession building, 1 million homes, used to build 2 million homes as 2005, 2006 half as many people in the country. More people renting. Theres a seminole change in willingness of people to own their home. Maybe not a bad thing. 70 of the people dont need to own a home. Weve got other dreams. Other dreams. What dreams to we have. So many. American dream to own a car . Get a raise. Thats the american dream. Happiness, first part. Dally lamm ma. It wasnt opening your ho