Hit markets since the year began, is up the most among the big three over in europe. The tenyear note yield, crude oil always a key consideration here. You can see the tenyear note yield below 1. 8. Wti up 6 . Brent also nearing that 35 mark. Were well above 30 on wti. Our road map this morning, it starts with apples fight against the fbi. Things continuing to heat up. Tim cook sending another letter to employees, and fbi director james comey taking a shot at apple in an oped. Ailllergan with better than expected results. Facebook teams up with samsung with Virtual Reality. Over at barcelona. 2017 additive. You mean Virtual Reality will be added for facebook in 2017 . I think so. If you parse what Su Zuckerberg said in the last conference call, he doesnt do anything unless its now, versus google. Google says how much money you are really making on this . Want to talk facebook and google. Stocks are poised for a strong open to begin the trading week. You saw future theres helped by that jump in oil prices. The u. S. Rig count fell for the ninth consecutive week and the International Energy agency says it expects u. S. Shale output this year to fall. A 22point jump in the s p 500 would put the index at break even for this month. Which is impressive given how we started off. Yes. Though, man, i know a lot of hem funds. The numbers there not quite as impressive. I dont know that 22 points or 22 whatever you want to call it is enough to move them back to even for the month. Always interesting to note that performance because, of course, they get a 2 of the ups. Usually, you know, a Significant Management fee as well. 20 of the ups and 2 management fee. Its been a difficult time, fridays close not that great. You think what will happen this weekend to make things good . Bernie sanders loses. Suddenly we have a frontrunner, the frontrunner is good for stocks. She can move to the right. You will see bank stocks moving up, drug stocks moving up. Lets watch allergen. I dont think think the shale is not the key issue. That agency can come out with whatever they want. Its canada and gulf of mexico. Shale is going to go down. Gulf of mexico theyre going nuts up there, they have been able to make it so all the money they put in is coming to tr fruition. When theyre pumping, theyre not making money. Theyre losing 2 bucks a barrel. The big issue is theres no place to put it. When you get the spread of brent, its possible we could make gasoline and sell it she cheaper. West texas posting is not accurate either. If you want to sell oil and you have heavy crude, it depends on the variety. I find myself wondering, reading stories today, a big energy conference, audi oil minister will be attending for the First Time Since 2009 this idea of getting the shale guys to shut off production. They cant. But even when they do, how quickly can they come back on . They can come back on quickly. Wont that keep a cap on prices . Thank you. This is what this a lot of the guys who come on, a lot of independent oil guys say listen, it will be back to 60, 70. No, the thing were good at is adding to production. We can create our own ceiling. So you need the saudis to ratchet back, which theyre not going to do, they dont want to lose market share. The whole idea that oil can go magically back up is just not going to happen. Theres so much companies that need to pump. A lot of the hedges are off now. 2016. And youll see a freeport or chesapeake start going up. People think, wow, this is my chance. Its not can freeport go to nine . Anything can go anywhere. Oil will not soar here. They cant. Right. Too Many Companies the marathons. Look at devon. If you go back over devons conference call, they literally said, listen, were fine. Were selling assets. Was this before they sold the stock . The day before. I matched. I parsed the wording. I mean, they banged people badly. Now, obviously if youre on if you made the stock went out below where the offer was on friday. Now its back up. Thats the kind of thing going on. You listen to these oil men, these guys are saying we have these assets. We cut the dividends that preserves capital. We are making asset sales. Were in good shape. They do 69 million shares. But those that can do. If you are in a position where people will buy your stock, even if its at 19 or in the case of hess, well bow low where you were buying it back yourself, as we saw them issue a lot of shares, you will do it. And you will live to see another day as opposed to companies that we know are not in a position to sell stock and will be dealing with restructuring. Theres two groups. The guys about 2 or under, 3. Companies are very much in trouble and then companies very much in trouble with their banks. We know that the banks john stump, the ceo of wells fargo, hes got about 20 billion. Now in bank loans to the patch what is the collateral there . Did you hedge . The bank of america guys are telling me that they hedged. You cant really hedge that much. Thats funny, hsbc reported earnings that were below expectations. The giant asian european bank. Part of the reason was write downs on Energy Related loans. We have not seen it impact the u. S. Banks. Not yet. They have been taking some reserves for that. But it will start to hit. Right. Its not small. Thats the one thing people have to realize. If you lent money to schlumberger, you will get that money back. Exxon. Exxon stock acts so great. They can pick off things. If you lent money to a Natural Gas Company in order to do an acquisition, good luck to you. Natural gas is so low. Right. Right. By the way, were not always talking even about public companies. Think about audrey mcclendons mid america how is it doing . How is it doing . Bonds are trading at very low numbers. Not doing well. In that case it was largely funded by the bond market. People have to keep track of the Pipeline Companies, we are so overpipeline in oil. Its incredible. Rbm put out a piece that was fabulous about how much how crude by rail is just ridiculous. We dont even need it in a lot of these areas. The Pipeline Companies have overbuilt for oil. Thats thats not going to change with oil going to 31. Right. So thats why i say dont chase this rally. This rally is based on crude surging, not based on the dollar going down, which is what we want. Not based on earnings which we would like. Its based on pajama trading. The futures guys seeing good over there and buying them here. All right. Its embarrassing how stupid it is. There are other things going on. The dollar is stronger against the british pound. We dont want that. Europe is going up because the dollar is getting strong. Were supposed to buy stocks because europe is going up . Its been wrong the whole year. We also should mention verizon . I see something on verizon. Xo assets s that fun . Yeah. Its a way back machine. I know. I know. Carl icahn. Owner of xo. Xo, chesapeake, freeport. And apple. I wonder if icahn still owns apple. The last filings indicated that he reduced. When hes a seller, he usually likes to sell. The 13. 5 million may have been in process. I dont know. It could be. This is one of those stories, whether us read the comey letter or the cook letter, and whats very clear is that theres really no edge for you and me to add to this. I want to add, look, do i know what tim cook is thinking . Hes pro Law Enforcement, antiterror. You know who we can get to add to it . Who. Eamon javers. How did you know to do that . Then we can react to it, or maybe not at all. Lets get to eamon. Hes been following the moment by moment emails and letters. He joins us from d. C. David, this thing has been hot overnight with the back and forth now in this war of words. Last night with the fbi director, this morning tim cook, the ceo of apple sending out a letter to his employees at apple thanks them for their service on behalf of privacy. Heres what tim cook said this morning. This case is about much more than a single phone or a single investigation. So when we received the governments order we knew we had to speak out. At stake is the Data Security of hundreds of millions of law abiding people and setting a dangerous precedent that threatens everyones civil liberties. Also last night we had the fbi director making a post to a legal blog making his case. Heres what james comey had to say last night. He said we dont want to break anyones encryption or set a master keys loose on the land. I hope thoughtful people will take the time to understand that. Apple hired ted olson, the legal tighten. He was on abcs this week yesterday making apples case. Apple has a responsibility to maintain the trust and faith of millions of people who depended upon apple to produce a product that protects their privacy, their intimate personal life. This is a pandoras box. Were not just talking about one magistrate. There are hundreds of magistrates. There are hundreds of other courts. And theres no limit to what the government could require apple to do if it succeeds this way. Clearly, guys, neither side is getting ready to back down. We can expect there might be congressional hearings. The house energy and Commerce Committee invited mr. Cook and mr. Comey to capitol hill to testify. We dont know whether they will accept that invitation. This legal wrangling could continue until the end of march when the next hearing is set. This doesnt look like its going away any time soon. No. Thank you, eamon. It does not. Its going to be in the news. What impact it has on apples stock, ill leave that to you to tell me. I didnt like the fact that theres a characterization that apple is doing this to sell more phones. Everyone in Silicon Valley is behind apple. I do think that you bought that phone with the expectation of privacy. One thing you taught me is the notion of the expectation of privacy with big government, here and in china, is a fallacy. Dream on. Encryption has changed the battlefield to a certain extent when it relates to your phone. Not your work phone, by the way. But the county says we want to be hacked. You should be able to hack your own phone. Why cant the county do that . Everyone is surprised that there wasnt a behindthescenes move to cook or someone high level at apple or securities saying, listen, dont make a fuss. Im not sure there wasnt. Do we really know . Its not clear there wasnt and he decided, this is it. Weve complied with dozens and dozens of these kinds of requests, but now were drawing the line. Do you think chinas a gimmick that they lose sales in china if they suddenly capitulated . I have no idea. Thats another thing floating. A lot floating. But what matters is the earnings, the iphone 5 and where they are, barcelona. The Iphone Iphone 7. The g. Whether the 7 will mcadam is on the move again. Hes on the move. David, what happened with verizon . Why is verizon the sexiest company we have today . Really, the sexiest company we have today is verizon . Youre saying that . Not sure i believe that. I have to make a phone call during the break. Lets take a break. Is it at all work related . Absolutely work related. I dont know what it will be about. We still have a few things coming up here. An exclusive interview with Brian Krzanich. Who is a blast. So understated. So cool. Hes a gamer. The guy is really cool. There you go. He doesnt act cool, hes soft cool. His company is teaming up with at t to test drone technology. patrick 1 how about done . patrick 2 thats the kind of control i like. And thats what they give me at national car rental. I can choose any car in the aisle i want without having to ask anyone. Who better to be the boss of you. patrick 1 than me. I mean, you. Us. vo go national. Go like a pro. And choose world. Choose, choose, choose. But at bedtime. Why settle for this . Enter sleep number and the ultimate sleep number event going on now. Sleepiq technology tells you how well you slept and what adjustments you can make. You like the bed soft. Hes more hardcore. So your sleep goes from good to great to wow only at a sleep number store, all beds on sale right now save 50 on the ultimate limited edition bed. Know better sleep with sleep number. Allergan reporting better than expected results from key products in its International Brand segment. Im going over some of the report here and the research. Generally a very good quarter from allergan. They are in a deal to be acquired, as we all know, the largest inversion thats ever taken place. Pfizer will be moving to become a foreign corporation. An irish corporation. As part of that deal. But the results themselves do matter in these cases. Yeah. Allergans Earnings Call going on now. And generally quite a positive number this morning. Reassuring over at isi, theyre saying positive things in terms of 2016 revenue guidance. It was a beat on gross margins. Gross margins were quite good. Revenues in line despite foreign exchange. Operating cash flow. Yeah. I liked it heres the thing, theres two components you have to watch. When is this deal going to close . Its such an overpay. Apparently thats in april. Thats the expectation. I want to see if theres any notes from the call in which they mention it. This is 44 of the new pfizer allergan . Thats right. Very high growth. It moves up pfizers growth rate and lowers the tax rate. It is attractive. My travel trust owns it, it has been a dog of late. Every pharma has. The spread in the deal is large. Theres continued concerns that treasury will do something when it issues the final regs on inversions. They issued in the midst of negotiating this deal. So there are a lot of worries. Many of them may be unfounded. They continue to pressure the socalled spread between what the deal is worth and where allergan and pfizer are. When i ask brent saunders, i ask him where would the stock be without the deal. Thats like asking dow chemical about what would happen. Yes. Is he coming on with you . I have senator saunders. Someone said how did you get senator saunders . I said brent saunders, this is a business show. Not senator saunders, who peaked, and thats why wall street and the drug stocks should be bought. He was never in it, i think thats something the media did. Senator sanders . I have the philadelphia accent. I have brent saunders. Senator sanders opinion on allergan is not of concern to me. Saunders, not a social list saunders is a moneymaker. David, i want to say, brexit. Now were finished with that, right . You said brexit. What you are going to see. Hangman . Really. Im going because of brexit. The london theater, the best. I was listening to willfred this morning. What does willfred recommend . Go to london. Up next, cramers mad dash. Lets give you a look at futures. Were set up for a strong, strong open. That is if you own stocks and are not short them more than long. To help pay for her kids ice time. Before earning 1 cash back everywhere, every time. And 2 back at the grocery store. Even before she got 3 back on gas, all with no hoops to jump through. Katie used her bankamericard cash rewards credit card to stay warm and toasty during the heat of competition. Thats the comfort of rewarding connections. Apply online or at a bank of america near you. We have about six minutes before the opening bell. Its monday. Yes. Bank of america has a really interesting kind of really part of this whole moment, which is that they say buy the truckers, but they also upgrade csx. You and i talked about norfolk southern. It was in the 90s. Its fallen to 75. Csx, the beneficiary of the widening of the panama canal. I think ships will go all the way instead of dealing with the west coast ports. I like this call. I think the rails have bottomed. They have been brought down by cruel and coal. They already told you coal will be down by 20 . Crude by rail is going down. Trinity 50 decline in orders in one of the most jarring Conference Calls i was on last week. These stocks are cheap. If you do year over Year Analysis its not going to be bad. Thats what people are starting to do. Theyre saying year over year comparisons get easy. I know people at home think this is so stupid, you can look at the way a company reports. But csx has bottomed here. Im willing to buy it. Not based on consolidation. Nobody believe theres will be any. No. On panama canal. Panama canal is huge for them. You need explain that more and quickly. I dont know if you remember that horrible strike in the west coast ports. You drop off in the west coast and you ship by rail east, because the panama canal does not allow those big container ships to go through. If you spend a couple more days and go east, think about the lack of friction, how much cheaper is it do business in the east from asian ships. Its really important. I was going to do valares. Mexico is strong. Wow. I thought it was interesting. Mexico is strong. Brazil is not. Brazil. Well get to that on the opening bell and a lot of other stocks we have not mentioned. Getting ready for the start of trading. Big week ahead. A lot more squawk on the street. Choose world. Choose, choose, choose. But at bedtime. Why settle for this . Enter sleep number and the ultimate sleep number event going on now. Sleepiq technology tells you how well you slept and what adjustments you can make. You like the bed soft. Hes more hardcore. So your sleep goes from good to great to wow only at a sleep number store, all beds on sale right now save 50 on the ultimate limited edition bed. Know better sleep with sleep number. Every insurance policy has a number. But not every Insurance Company understands the life behind it. For those whove served and the families who supported them, we offer our best service in return. Usaa. We know what it means to serve. Get an insurance quote and see why 92 of our members plan to stay for life. Youre watching cnbcs squawk on the street live from the Financial Capital of the world with the opening bell set to ring in about a couple minutes. Im looking at were trapped by oil. As long as oil stays up, well continue to rally. I hate that kind of rally. Im urging people to not participate at this moment. Oil is probably at its high. You know what . Heres one to watch, youre watching the opening bell, its abx, gold is coming off, and i want people to understand that when gold comes off, thats part of this same trade of the less of the pressure. Here we go. This stock has not been that good, but barrick doing the onners. At the nasdaq, Sunshine Bank corp. Two stocks not doing good, the bank stocks and t