European markets following through to a certain extent largely in the green. Spain is the outlier there. Election. A little more election. 2. 18 for the tenyear yield. I hear that r word, but everybody says well hit below 2 again. If youre in other parts of the country youre talking r. Were talking recession. But we could be talking road map. Ours starts with star wars. And a rare look inside apples operations, and what ceo tim cook is calling political crap. And mark Martin Shkreli spe out after his arrest. The latest after that ongoing drama. Quite a sigh there. People may have been seeing on friday. Stocks set to open higher. Both the dow and the s p finished the last week below the 50 and 200day moving averages. Oil is a major factor. Brent crude has fallen to an 11year low. You know, when it comes to oil, jim, very simply it is a collapse in a central part of the world economy. Thats the way you have to think about it. I think we have to recognize there was a belief that oil would stay high for very long time. So therefore everyone got credit to do it. I went over the stocks this weekend, david. Just went over all the ones that are under ten. These are Major American Companies that employ a huge number of people. Put a lot of people to work and a lot of different industries, theyre not going to make it. Theyre not going to make it. No. And its natural gas. We talk about oil, not enough about natural gas. Natural gas is below almost maybe theres one or two companies that can make money. Yeah. Natural gas is were flaring a huge amount. Doesnt matter. 1. 82. 2 is the break even for almost every company in the country. The ones below ten are natural gas companies, except a handful that happen to have both. I will mention names. You have to start to. The customer talks about it. Southwestern, ancanna, ultra, sand ridge. Large companies. Freeport, chesapeake. Chesapeake doing a lot of oil. Not natural gas. They sold 5 billion to who . Southwestern energy. I visited chesapeakes uticas properties, not so hot. We sit here and say we wont talk about them, but we owe something to the viewers because their Balance Sheets are hideous. Of them are distressed. It always amazes me the ability companies do have to avoid the death clutches. They reorganize. You can reorganize, sometimes you can do that outside of bankruptcy. Any time along the way these companies had an opportunity to sell stock, they probably should have. We saw it during the financial crisis as well. Nothing says that lehman might have been saved, understood. Nonetheless, they didnt take advantage of selling equity. The same is true here. Even private companies. Dont forget, the private Companies Led by the man who formed chesapeake in its original incarnation. Do you know how many billions of dollars he raised . Harold hamm was on this morning. He came on mad money. He could come on our air all he wants and be wrong. I want to be respectful. But there are a lot of people i thought oil could hold 40. I was wrong. If someone thinks it could hold 80, theyre wrong. Then i hear this word recession. I think theres certainly plenty of people who do not believe we are going into one. No. But its part of the conversation im having with a lot of the guys who manage a lot of assets that i speak to on a dale lily basis. Retail sales. The credit markets. I argue, listen, thats junk. Largely contained to commodities and energy. Some will say its a sign. Its a sign that something worse is happening here. I dont know. All that said, it seems to be picking up currency, maybe fridays decline is in part due to these overall concerns. The two areas that were weakest when i went over companies this weekend were retail and oil. The airlines seem to have made a bottom. They really are responsive to what could be 25 oil. I didnt foresee that. If you look a lot of the next leg down started with kinder marg morgan. Rich kinder did not do a good job. He was a buyer on the way down. Bought some of harold hamms properties. This group is the most thin skinned group of executives. The pipeline or broadly speaking . Theyre all so, for the most part, arrogant. Few kept their debt down. Embridge. Theyre not. Arrogance does have go along with it. Its an old spirit of wildcatting, im getting in there. Aubrey mcclendon, who i was referring to earlier, those guys are incredible personalities who have to be bold. You would think they also would therefore not necessarily take the criticism too harshly. One of the men who was right and said oil would go dramatically lower, sharif suke fired from lng. Yes, he was. S shaneer. And sharif always said no oil company doesnt have a market, they have producer. No one pulls back. This Department Store chain story, macys, kohls, dillards, these companies are doing better than their stocks indicate. The stress is freeport and chesapeake. Okay. Less the sand ridge. Its a lot in the equities that have already suffered dramatically. All that said, give me your take on where we stand in the market as we wrap up this year and head into next. I think there are a handful of stocks that continue to do well. I think that we were hurt if oil were to its so binary. I will Say Something silly. If oil went to 40 or 38, the backs would move. They went down hard last week. Retail would go higher. Its all counter intuitive. Totally. One thing that confuses viewers, we will look back and think how stupid this is we always think the market is dumb about stocks and smart about bonds. The market is being dumb about everything. Commodities, bonds. A lot of companies are doing better than the stocks indicate but are in free fall. Thats worrisome to people. Retail stocks are reacting to recession. They need to react to employment. Its not like auto sales fell off a cliff. Carmax wasnt good. But i think the drugs and banks could be meeters next iyear. But the dollar hasnt shot through the roof. It hasnt. Its oil, oil, oil. Some people think high yield is about to be a second shoe. Our friend jim stewart says no, but there isnt enough of it to destroy our equity market. You would not think so. Not as many securitized products. Lets get to a particular name, disney. A Great Box Office history in the making for this company. Star wars the force awakens posting a record breaking Opening Weekend take, 238 million in north america. Estimates show the film grossing 517 million around the world. That would be shy of Jurassic World in june. But the film hasnt opened in china yet. That release will take place next month. An incredible success, having bought lucas film a couple years back for 4 billion in cash and stock. This franchise will be worth multiples of that. People dont understand bob igers strategy. Its not like hes saying espns subs drop, i should panic, throw my hands up and listen to rich greenfield and give up. Its not like that in the executive suite. They say i bought this thing for 4 billion, half will be made up with this release. You think 2 billion from one release . I think it could be. There will be more screens this weekend. The 2 30 shows were sold out around the country. Im talking 2 30 a. M. Yeah. Sold out. 4,000 screens, 11,000 showings, maybe its 12,000 showings next weekend. Its the most talked about movie ive seen. Hasbro up. Maybe toy sales are not that bad. Espn for a second. Greenfield was saying people dont want all espn. People dont want all stations that they have to get but theyre jammed. One of the oneses th s thethey espn. If i could drop 420 channels, i would. But i would not drop espn. Understood. But his thesis on friday, of course, we have greenfield on, he was on squawk box this morning. Probably on tomorrow. Probably on Christmas Day when the markets are closed. Hes very good at marketing. Some companies are not fond of him in part, but his thesis is not wrong. Theres a part of it malone has been talking about this, too. John malone, that is, who i think i take more seriously than mr. Greenfield. Right. Which is that disney signed up some of these deals with the cable providers, the comcasts, charters of the world, took price increases for espn but said we could be available to a smaller percentage of your subscribers than some other networks are, giving them flexibility to offer skinnier bundles that dont have espn. Fios. So maybe 80 have espn available. So maybe some falling in terms of people saying no more. There may be tens of millions of people who want espn in this country, it may not be 80 million or 100 million. Remember when golden sold cap cities, there was a time when i thought the Good Morning America franchise started going down. I said abc is finished. Finished, finished. You know what . Did it matter . Espn is huge. 40 of profits. Espn is huge. Do you think again, bob iger, there are other properties that can be bought that have amazing, amazing takeaway. If we look at the next three weeks of disney, obviously maybe the next three months, maybe it hasnt been reestablished. If we look at a longterm business of entertainment incredible. Time warner. Jim, theres a reason its up 14 this year and Everything Else has been crushed. Crushed. We have great americans at the helm of time warner. Fox down 25 . The only other names i point out time and time again is netflix. What happens if disney decides to buy time warner. Thats not going to happen. Lets say disney all right. Lets say look, in my defense im not going to be on the defense of its a great provider. Thats why it has a 180 million market value. When he bought lucas film, i many people came on and said he paid way too much. They said the same thing about pixar, i did totally wrong. Maybe he has something up the sleeve. Do you remember last year bcs was on espn. Yeah. Do you ever watch espn . Its gripping tv. Its great. I watch it during the day. Its expensive. I shouldnt have said that. If youre its it runs a good amount of money a month. Geez, snow white is expensive. I was never a fan of the dwarfs any way. I do like dopey. How about sleepy . Not when we come back, tim cook had some harsh words for apples critics. And a look at futures this morning after that big down day on friday, were poised for a higher open. We have more squawk on the street coming right at you. Here at the Td Ameritrade trader group, they work all the time. Sup jj . Working hard . Working 24 7 on mobile trader, rated 1 trading app in the app store. It lets you trade stocks, options, futures. Even advanced orders. And it offers more charts than a lot of the other competitors do in desktop. You work so late. I guess you dont see your family very much . I see them all the time. Did you finish your derivative pricing model, honey . For all the confidence you need. Td ameritrade. You got this. I love working in the salinas area becauseriselda zendejas. I always wanted to do something where i could help people around me. So being a construction supervisor for pg e gives me the opportunity to give a little bit back to my community. I have three boys. Theyre what keep me going every day. Our friends, families live in the area. And it is important for all of us that we keep our community safe. Together, were building a better california. Apples tim cook speaking out against critics who say his company is avoiding taxes on overseas profits calling such accusations political crap. His comments airing last night on 60 minutes where he had a bone to pick with the u. S. Corporate tax code. We pay more taxes in this country than anyone. They know that, and you should because of how much money you make. I dont deny that. We happily pay it. You also have more money overseas than any other american company. We do. As i said before, twothirds of our business is over there. So why dont you bring that home. Id love to. Why dont you. Because it would cost me 40 to bring it home. Thats not a reasonable thing to do. This is a tax code, charlie, made for the industrial age, not the digital age. Its backwards. Its awful for america. It should have been fixed many years ago. You recall that mr. Cook appeared in front of the senate in may of 2013, carl levins committee, which always does a good job coming up talking about this very subject in terms of how they created these irish subsidiaries. Soon after being created, a company where they put their intellectual property and root foreign sales through there and not pay taxes on those sales. As mr. Cook pointed out almost twothirds of their sales are foreign. China being an important part of that overall, jim. Cook said similar things in front of congress. Theres plenty of people who agree with him that this needs to be fixed. We talked so often about inversions here, a different subject but part of the overall tapestry, its unclear that congress will ever be able do anything since they want to link Corporate Tax reform and overall tax reform. Thats dead on arrival. One thing i did take seriously when i was at law school is taxes. The Corporate Tax class was the keystone of harvard law. The main thing you learned was tax avoidance is everybodys not just allowed, its a duty. Youre supposed to try to avoid. Theres a confusion between the words avoid and evade. Avoid is patriotic, youre allowed to figure out the code. Evade, you go to jail. Hes avoiding taxes, which youre allowed to do. The government says if we dont get you, you get away with it. The system we have, he pointed out, made a comparison between industrial and digital economy. The Corporate Tax is idiotic. Its why we have seen so many corporates change their domicile, which we talked about for years now, and has been a big issue over the last year or so. It will continue to be an issue but it doesnt appear that congress will be able do something specifically about it you wonder how much money would be brought back. The republican candidates, some of them talking about a tax holiday of some kind. Others believe you could have created an Infrastructure Bank by taxing some portion of it and done a big thing for the country. Its all just words. Senator schumer has probably the most articulate view on this. A view that almost everybody in congress would agree to, a nice package of Infrastructure Bank, bring the money back. If the president were to get behind schumer t would get done. It would get done with paul ryan who seems to be i will use a word people hate, hes reasonable. He got that package through with solar. Solar is moving stocks big. That was a concession to democrats. He makes deals. Schumer and ryan can get this done. Im glad that tim cook came out and said it. Interesting piece on apple. For us who know the company well, seeing trying to get him on the watch. Rose didnt simply say is it a failure . No, nor did cook necessarily say there wouldnt be more idrations. But thats apples style. Is this dick tracy . Yeah, but i need this to be skywalker if this could make me hans solo, i would pay anything. You would be in raiders of the lost ark. Those are disney characters. Those are two of the most iconic psychotic . No, iconic. That could be Martin Shkreli, who well have information on coming up after this. How else do you think he gets around so fast . Take the reins this holiday and get the mercedesbenz youve always wanted during the winter event. Hurry, offers end january 4th some of these experimentsere notmay not work. Il. But a few might shape the future. Like turning algae into biofuel. New technology for capturing co2 emissions. And cars twice as efficient as the average car today. Ideas exxonmobil scientists are working on to make energy go further. No matter how many tries it takes. Energy lives here. I watch for the perfect moment. A the one nobody else sees. And when i find it i go for it. announcer at scottrade, we share your passion for trading. Thats why we give you the edge, with innovative charting and trading features, plus, powerful mobile apps so youre always connected, wherever you are. Because at scottrade, our passion is to power yours. We dont have much time for a mad dash. Five minutes to the opening bel bell. Alphabet upped to outperform. You would have thought amazon would come out today and do that. Thats a natural. Ruth poratt comes in, cfo, formerly of morgan stanley, changes the coloration of it. I think thats going to matter. What it did was say, listen, well return capital. Well organize in a way that you wont that selfdriving car, which will be huge. It will be huge. Change the world. It will change the world. The self driving car is not part of the surge they wiped out everyone in surge. When will we see through . The serve driving car . No, when we start to see wan what i think next quarter. Sometimes Companies Come in and crush other companies. Rarely do you have a company like microsoft that makes a comeback. When we trash yahoo every day, maybe we should be praising alphabet every day. They have a better search engine. Thats where the money is amazon, i ordered something today. I think its at my place. It will be there. They knew i would order. Thats an algorithm that predicted i would buy those speakers. Unlike alphabet and facebook. Were you on the amazon stock this weekend, people who hate oil may also want to sell the s p. We have the opening bell coming up after this. Did we just, start looking for a house . Oh did you see that listing on zillow i sent you. You see that bathroom . Did we just decide to buy house . I think so. Yay find your way home. Zillow. Youre watching cnbcs squawk on the street. The opening bell will ring in about 30 seconds. Should be a fairly quiet week, one would imagine, in terms of news flow. I think we have to watch redemptions. This might be an opportunity for hedge funds that are hurting to blow up again. They are down near the wire. The hedge funds will look at this and say ill get out. Theyre worrying about First Quarter redemptions. I dont think redemptions were as bad as many feared. Really . But i think guys are worrying about the First Quarter of next year. There is the opening bell. Looking back at the s p realtime exchange. At the big board, nyc ties. Over at the nasdaq, the National Investor institute, new yorks chapter celebrating the organizations 45th anniversary. Here we go after what was a significant down day on friday, no doubt about that one. Oils down. Oils down. Obviously i think its iran now. I think iran, saudis pumping forever. Iran people want to stop iran. They dont want to give them money, they dont want to give isis money. So saudi arabia does whatever is necessary to starve isis. Saudis are motivated politically. They have big cash re