Cfo will join us first on cnbc. Staples and office depot higher in the premarket, reports two in advanced merger talks. First up Oil Prices Rising sharply on expectation of decline and u. S. Drilling activity. Bp posted better than expected quarterly results. Bp ceo bob dudley spoke this morning. I think its going to take time. Could be a long time. There is excess supply. U. S. Productions still growing. We see about the rig counts what its growing. And chinese demand of course great. Growth in china is not as high as it was. So we have stock levels filling up all over the world, tanks filling up. Wont be long before people putting them in ships and that take is along time to work its way off. Is there a lot of oil news today. Thats just one data point. I love bob. Hes late here. Theres already been a dramatic increase in the number of financial players taking down tankers. If you look at nordic and american tanker they will tell you that is happening now. Whats interesting and bob dudley, i know bp is hated by many people some people never go to bp again, but this guys a very good executive. Had to deal with different challenges. Bp exxon, chevron, whether by the buyback, what he said dont believe were at the bottom. Analysts are desperate to call a bottom. Saw one at stifel talking. Ann report anadarko reporting a big shortfall. Its all about letters. Whether a vbounce and by yearend back 80, 90 or a u and at 6 on if you think its u you dont want to buy, you want to sell them into this. What do you think . Im leaning towards u i believe what dudley said, First Quarter will have a gigantic amount of oil. A lot people say that so what . You got to move now. And if you feel like youve got to move now, youre going to be saying, ive got stocks that stifel said down 40 , start with the im not against that. Im not against that anymore. The downgrades have been theres downgrades every day. When theres this many ground grades i get less fear fls. Anadarko a big miss. People looking at charts of ge deciding whether thats a tell at this point. I think theres a lot of different tells. I think freeport really remember freeport bought oil at the top, its copper its gold. And downgraded by bank of America Today, buy to hole. A lot of buys. Stocks up premarket trading. Stocks are up and what it tells me is people are itching to get in. Bps quarter was good. Especially russia big surprise. When he was on dudleys like hes very wry. What are you doing in russia the most dangerous place on earth. He says ive got to go where the oil goes. Id never let my kids go there he said so what . Like hes tougher than he looks. But your point to investors who want to anybody is be careful . Yeah. My conoco up big yesterday. My charitable trust, please help me, please take it up, please. And now suddenly Everyone Wants to buy, we dodd goth a downgrade jpmorgan. No the stock didnt go down. When people see downgrades and stocks dont come down theyre emboldened, its 5 1, you think gasoline bottoms at 2 bucks. Core labs on last week reservoir scientists of oil. David betting me hes a really smart guy, betting me were at the bottom. I some of these guys you mentioned gas prices up seven days in a row, not a lot, but two cents after 120 days down. Smells like a bottom. Im in the u bottom. Were putting in a bottom. No doubt in my mind. Its the snapback. Bund boones a smart guy. No one think its going to be continuing to go down. Thats different from three weeks ago, where the consensus, could be 040, 35 i think thats taken off the table. More than half of the u. S. Gas stations at two bucks or below. Japan better numbers because of oil. I believe our economys going to benefit. Visa threw us off last week saying it hasnt happened yet. But it will happen. Europe i think, is clearly happening. I think theres a better tone in europe. Youve been saying that for a while. Said to germany, well play ball. But germanys got to play ball. Germany plays ball well get green chutes in europe. Optimistic. Sounds like theyll push back hard talks for a couple of months. Ukraine not good. Issues with china baltic freight not up. You see copper up for a couple days china comes back online. Everyone will regret they sold in january. U. P. S. , better reporting fourth quart earnings with lowered estimate. Issued a warning last month, citing higher holiday costs. Numberyear guidance below forecasts again. Talk with the cfo kurt kuehn. Built the operating model for volume that exceeded expectations and might have happened a couple days but it wasnt every day. They have a logistics problem and theyre the expert which is problematic. I i mean really. In terms of the timing and supply chain. Now, its a Great AmericanCompany Charitable trust owns it want to hang myself every time i see it in the charitable trust. Sometimes i want to slash my wrist. I know dont want to make jokes about suicide, suicides very real. A theoretical construct, how to guide down and cut again . Weve seen that from sandisk and that is the kiss of death. Now, the Conference Calls going on now. The problem with u. S. Is like seattle seahawks. Youve got to wait a full year before you come back. U. P. S. , not only did they throw a pick okay i mean it was a pick, but they intended to its like they intended, we cant possibly give it to lynch that would be too good. Like number 538 on eespn. No belichick was fedex, these guys are pete carroll and now youve got to wait another year. For the year 505 to 530. Street 505 to 6. Do a big buyback, boost the dividend, being more tough. I think that they lost credibility the second time or else we have a change at the top. Now, remember my change at the top, mcdonalds, got it. Okay . My change at the top, u. P. S. Not yet. Change at the top, twitter. Theyre digging their theyre digging their heels in my take is that it maybe they know the quarters good because a lot of people you have 110 Million People watching, maybe tweeters. Yes. You see Monthly Average user. Everyones talking about twitters going to do. I think only way he gets that affirmation is the quarter shows monetization. Otherwise, the long knives could be out for him. As they have been for a few. Bring in my i may bring well learn more thursday night on twitter. Meantime shares of staples and office depot up in the premarket. Both Companies Reportedly in some advanced merger talks. Activists investor Starboard Value pushing for a combination of two supplyretailers. Believe were overstored. Yeah. These guys are up against costco, tremendous business at am ma amazon. Versus cisco, the other sys. Trying to stop the food service thats anticompetitive. Well hear from david. To me this one of those things they would have hated it a few years ago but so many plays to get Office Supply it done matter. You mentioned david faber. I think we have him on the phone. Yes. Good morning. Holy cow. Good morning, guys. Good morning. Where are you . Say again . Where are you . Im in a trailer, actually. Trailer . Yeah. Yeah. Im doing a little tv work other than our own. I hope its the hoord kindhollywood kind. Yeah, it is. Your take on office depot. Listen i think not unexpected, we know what starboards view as been. Ive had opportunities to speak with them numerous times. You know the fact is while analysts may differ you can get to a number some would say, and this is on the high side as much as 2 billion in synergies. Whether its realistic ill let others debate. Thats the number here. And jims right, of course. We discussed this day one, the first letter which is we certainly saw a change in the way the ftc approaches the socalled market when it approved the Office Depot Office Max deal. But thanning said its anybodys guess. No doubt that you can get all of stuff you buy in a staples and office depot in a lot of different places and those say it differs from the antitrust opposition that we saw that stopped Dollar General from be being able to pursue family dollar. Well have to wait and see on the economics and how they deal with social issues to the extent they can get to the finish line here in any talks of who takes over. The current ceo of office depot thought to have done a nice job with the integration of office max. Would he be the ceo choice . Ron sergeant at staples, does he want to stay on as ceo and take on the potential integration . A lot of questions. But certainly something that people have will have time to focus on. David, let me ask you, the stock started going applause the 11 12 we heard this now its at 19. I mean, is there a place for the guys to say, the whole things gone up too much . One of these guys says its just not worth it to merge, or are these companies more desperate than we think . Thats a great question. I dont know the answer at this point, jim, and id love to get insight into the economics here in terms of what theyre talking about, whether what mix of cash and stock, and or to your point, you know it can be more difficult to negotiate a signature premium if youre office depot, for example, when your stock has already moved up substantially from the time when the first letter was sent by starboard. But that said, jim, i mean you all knee the land escape has changed. Certainly if theres an opportunity to capture those synergies you might want to take a shot at doing it though frankly, theres no guarantee at all that the antitrust is going to go their way. But it would be a fabulous merger. They compete against each other in a lot of places of course what the government shouldnt want then can shut down one here, one there staples cut a lot not productive. A terrific Domestic Company to invest in. Between radioshack and sears, the store closing shrink to grow, as we call it. Sometimes shrink to shrink. Radioshack delisted, wow. Whats come of it . David, safe travels. Hur huhry back. See you same place tomorrow. David faber on assignment today. When we come back disney and chipotle will explore what to expect from both companies when they report after the bell tonight. Also ahead stepping into the cloud, a live and exclusive interview with the ceo of vmware and your look at premarket on tuesday. Dow had five straight session of moves of 195 points up or down as volatility comes back. More jacques on the squawk on the street from post 9. 73 of americans try. To cook healthy meals. Yet up to 90 fall short in getting key nutrients from food alone. Lets do more. Add one a day 50 . Complete with key nutrients we may need. Plus it supports physical energy with b vitamins. One a day 50 for over 60,000 california foster children nights can feel long and lonely. I miss my sister. I miss my old school. I miss my room. I dont want special treatment. I just wanna feel normal. To help, sleep train is collecting pajamas for foster children, big and small. Bring your gift to any sleep train and help make a Foster Childs night a little cozier. Not everyone can be a Foster Parent but anyone can help a foster child. Two of cramers favorite stocks reporting after the bell tonight. Disney, dow component, pecked to report fiscal First Quarter earnings of 1. 07. Chipotle analysts looking for profit of 3. 79. Gas at play. Last Conference Call disney we dont have reaction to gasoline. Its going to turn out they done this is a seminal decline in gasoline. Youve got star wars later this year. Lets say youre disappointed youre not going to get back in thigh, before star wars. Espn had a monster quarter because of the College Bowl Series which was fantastic. I think that this football season, they did very well. Theres a lot to like disney. It does sell off you want to be there. Chipotle, i recommended this at 50. People say how do you know . Danny came on mad money listen, this is the complain to own, backing it ever since im think very point blank if they miss the thing, it would be surprising because year over year theyve got easy compares because guacamole very high and i also think that the price of the Natural Organic beef has gotten better. But these guys are great. Okay. Theyre great. A Great American company. I was having dinner last night, very funny, asking people what about chipotle . Chipotle shake shack, shake shack could be early, chipotle expensive. Chipotles never been cheap. And i cant wait to hear what they have to say. So good what they do. Piece in the Washington Post looking at fast casual what fast casual means. Some Companies Like buffalo wild wings, according to some data providers are fast casual others say theyre not. As a group, the categorys 600 up. I went to the chipotle website. You like to know what are they saying . Margaritas so good youre forget youre drinking from a plastic cup. Im organic, natural, food with integrity. Im also with a tequila, put me down for that. Ill take that. Liquor could be a big, big win for them. Big. And circling back to disney as well frozen the phenomenon from last year they are going to have a short. I think frozen short when cinderella rolls out in march. And as far star wars iger said episode 8 comes 2017. Episode 92019. Lays out a road map. An article in the paper saying that theyre going to get a delay in china. Again if you sell it off that try to get back in. Take a look at the chart on this thing. Almost impossible to get back in. Every time that theres some disappointment, its been such an amazing buy opportunity. Im going to say thats probably going to happen again. Gilead tonight as well. Gilead, interesting to see what they say about the deals they had to cut up. Cramers mad dash, count down to the opening bell. One more look at premarket on tuesday. A lot of cross currents. The euro twoweek high. Headlines out of germany and greece awfully interesting. More jacques on squawk on the street from the nyse. Thats more. Shh. I know thats more than 100 . But thats what winners give. Now bicycle kick your old 401 k into an ira. I know, i know. Listen, just get td ameritrades rollover consultants on the horn. Theyll guide you through the whole process. Its simple. Even she could do it. Whatever, janet. For all the confidence you need. Td ameritrade. You got this. Know that chasing performance can mean lower returns and fewer choices in retirement. Know that proper allocation could help increase returns so you can enjoy that second home sooner. Know the right Financial Planning can help you save for college and retirement. Know where you stand with pnc total insight. A new investing and Banking Experience with personalized guidance and online tools. Visit a branch, call or go online today. 8 30 until the opening bell on tuesday. Lets get cramers mad dash. 3d stocks going to get popped. Might be a new term lets move to sports, when marshawn doesnt get the ball and toss into the scrum, youre doing a stratasys. Disaster. This is one of those situations where theres a writedown, jpmorgan, citi piper, the preferred. Now i backed away from the group because hewlettpackards coming in. And i had gone to see the hp 3d. These companies are secondary players once hp comes in. Maker bot, everybody thought terrific. But they had the wrong product, wrong time, price competition, 3d systems going down too. This moment captured the fancy of america because if you go to youtube, you see 3d, its very exciting. I went to see hewlettpackards 3d, they made a bobblehead, it was better than the actual bobblehead better than i am. Cramer said something right. But i do think that you cant even get in here. But it does does it make you question the legitimacy of the market or just the stock . This i think that its very real. But i think that there are new versions coming out all the time and this is a built in on sole less lens. Hp a 2016 issue. Thats going to freeze the market. Youre not going to want this. When hp comes out, theyll really take it. Auto sales today. Weve gotten crisler with a good beat. Phil lebeau has ford as well. Ford reporting january sales of an increase of 15. 3 , that is a little below the edmunds. Com estimate of 17. 8 . Waiting to find out details here. Remember, still ramping up production of the new fseries. The kansas city plant still down. Numbers might be light. Chrysler nissan and chrysler both reported best januarys ever. Ever. Not just since 2006 or 7 best januarys ever. Well get the gm numbers in six minutes. Back to you. Thank you. I mean autonation 17 million units, mark fields terrific job at ford turning it around, good yield. Phil mentions chrysler. Jeep up 23. Yeah. New cherokee suv up 44. Kelly blue look looking for the bestian in nine years. Not the stuff of depression. Not the stuff of gloom. This is the consumer doing better spending worldwide. Oil coming down little bit more flush, some units turning around i think that europe could turn no one believes that. Thats what i like. When no one believes when you want to be in. What gm and toyota and other guys say later this morning. El woo well get the opening bell in 5 30. Dont go away. Opinions. Theres no shortage in this world. Who do you trust . Whose analysis is accurate . How do you make sense of it all . A simple unbiased stock score consolidated from the opinions of independent analysts. Is that too much to ask . Nope. Equity summary score powered by starmine, will help you execute your ideas with speed and conviction. And its only on fidelity. Com. Open an account and find more of the expertise you need to be a better investor. Youre watching cnbcs squawk on street on tuesday. Live from the Financial Capital of the world, opening bell in about 2 30. And a lot happening today. Of course the dows gone through a series of volatile sessions. Basically made up for friday yesterday. Yeah. Almost to the point on the s p. Oil started going up and people felt that maybe the dollar not going to be so strong Interest Rates you know, went up a little. These are things that typically you would have sold stocks on but in a bizarreworld we want normalcy. Normalcy is not to see a commodity plummet. Normalcy is to think that maybe things are better. I think a lot of people felt in last few days internationals gotten so bad our earnings will be hurt. Anything that changes the tone the narrative more proeurope more projapan if china comes into place, wow. Thats whats behind that term. The german tenyear yield fel