With stocks and the march to dow 20k, as you know was less than a point away from making history on friday. Plus, coke and p g getting downgraded to sell this morning over at Goldman Sachs. And a busy week on capitol hill, confirmation hearings for the president elects cabinet picks are ready to get underway. First up, once again the dow will take a shot at hitting 20k. Theres a call out of goldman not helping a pair of blue chips the Firm Downgrades coke and p g to sell saying it sees headwinds from a stronger dollar as well as sluggish and market demand. Not often you get two sells on two dow components from one firm in one day. These are companies these are Great American companies. Its obvious that this is a call setting self up for much Stronger Economic growth. Now, it is the wrong time for the call because Interest Rates are down big today. So thats going to put pressure on the banks. So if were trying to get to dow 20,000, you may see on the tape in the bottom a lot of good things, but you lose proctor, you lose cocacola and you lose Goldman Sachs and you lose j. P. Morgan, youre not going to get where you need to go. Im predicting no special. You said friday it looks like were asking too much out of goldman. Yes. I mean, theres 12 Companies Need to increase double digits in order to get back to where they were. Why do we keep asking goldman to do so much . First of all, they dont even have gary kohn anymore. No. They dont have a repeal of the volcker rule yet. Not yet. I felt Lloyd Blankfein is probably sitting back watching the giants lose and say i just threw that in as a completely gratuitous reference. Yes, you did. But how much do we have to do here . Took you about 30 seconds no, actually, were two minutes into the show. I tried to get it in earlier but you started talking about the downgrade. Threw my game off. I did talk about the downgrade. But goldman has given us plenty, hasnt it . Its given us all shes got. Its a scotty situation. Not scotty wapner which i will be on again today for another gratuitous plug. Ill set my vcr. How do you program a vcr . We had the momentum going into that moment on friday, where do they get these hats so quickly . Theyve had them ready. I have an eagles cap. Still waiting on that one. Yeah, thats one thing both of these goldman calls is a reminder of forex head winds, right . Yeah, its about time. Holy cow, people have really overlooked this situation. In the zeal to like whats going on, we forget that the numbers have to come down for a lot of these companies unless you get a tax reform immediately. And its very clear thats not going to be the case. Right. British pound. Oh, my, the british pound. Talking about currency. Press conference was all about immigration. Wasnt even about like economics. It was like, listen, we have to do this now because of immigration. And immigration is code, i think, for saying what were really after here is not better economics. Were here for fewer workers. Yeah, thats a big move. When you see a currency down over 100 basis points as that is right there. Shaky. I was shaking because i just look at this pound and i think what is going to happen . Sara and wilf this morning talking about inflation in britain, but the wrong kind of inflation. I dont think thats so far off the market. The journal takes a crack at arguing whether the rally has just begun. Did you see that . If you look at the outflows of bond funds from the beginning of 14 through october, 381 billion investors bought. They just bought this notion of secular stagnation. There were probably 47 articles about why nothings going to happen and then there was that piece. I know. Almost every article in conventional media has the same tone which is, look, this is not going to happen. Theres this tax reform and its not going to end and i saw ken griffin talking about they had a code but nothing was going to happen. And then theres this article, hey, listen, were only in the beginning. I looked at that piece and said where you bean, partner . Quite a rally since the election theres been a this dows had this big move. We have. We have. Should it be scary for people who suddenly have been weighted more towards bonds during much of this rally and say now is the time . Well, this is good timing. You have a nice rally in bonds if you want to try to exit, this is as good a time as any. It is. It is. And also another story today been very strong. Look, i think things that matter are oil. And you dont want to see oil stalled. You need to see rates go up because this is a bank led rally. And you need to be able to see quick repatriation because the companies that have the most overseas have the most to lose from the strong dollar. And those are the things im thinking about away from takeovers. All right. Were going to watch all of that of course we said earlier its a big week for the president elect. His cabinet picks head to capitol hill for confirmation hearings. Tomorrow it will be attorney general designate senator Jeff Sessions and wednesday is Rex Tillerson. Of course secretary, tillerson said to be the headline on this slate. Tillerson, you have the headlines last week, president elect admitted there was hacking this weekend. I thought that was interesting. But i do believe that tillerson is going to be a referendum on this notion of russia and friendship and notion of putting someone in state that has no state experience and really very much i think this is it. This is the hearing well talk about how quickly much of the agenda is going to go through . I got to tell you i dont really know. I know tillerson as a ceo, all right. And i know thats a mere relevance, look at how they did in the downturn. This thing didnt blink. But thats not exactly what qualifies you as bog gi bottom. Right. But shouldnt we be waiting until we really see the Economic Team take shape to sort of focus on the things that at least our audience for the most part has interest in and are the subjects we spend most of our time discussing . I debated that issue. Im so glad you brought it up. I was thinking everyone was the Economic Team, whether it be poster or labor, tillerson or state, these are all Economic Teams. Of course he could make decisions on weapons programs. Thats true. That will have an impact. Historically by the way hes a grunt, so to speak. Hes not about big weapons. Hes about training a force to be able to deal with precision. Ive got to tell you your point i guess is if Lindsey Graham and john mccain and perhaps the democrats entirely and one more republican decide to go after tillerson and that gets bogged down, then you could see the agenda right. Delayed. Thats the dominant fact that makes dow 20,000 talk would be off base. Youve crystallized it better than i did. The senate does not have a lot of trump republicans, so to speak. And i think that those hearings last week were really in the face of a trump who was trying to have real politique. It seems to be not the theme of some of the leading republicans. Yeah. Politico has a nice parlor game this morning arguing or asking whether or not khon will outshine mnuchin in terms of getting all the attention. Said one washington insider late last week, quote, if youre a ceo or the head of a bank or whatever, are you going to pick up who are you going to pick up the phone and call . Gary is someone you already know. Youre going to call gary. Mnuchin is an easy guy met in passing, but gary khon is a visible guy. Much more broadly known than is mr. Mnuchin within at least the community the business community. We have had moments where the treasury secretary george w. Bush. Looking, if youre looking to finance a film, mnuchin will tell you the ins and outs. Things he did. No, actually, he did some things for the first time that are important that other studios are looking to do in terms of selling ahead part of the slate to get a Financing Deal for it to take risk out. Things like that. Are you going Golden Globes here . I am not going Golden Globes. I am just talking about that. Do you think cohn will be on the heads up in 2017 . You are getting ahead of the story why is that ahead of the story . Thats next year. Because he just got this job. Just thinking. I like the way hes thinking. Sure. Thinking ahead. First things first. When we come back, lots of deals to get to this morning including a well known american brand. Also ahead the auto industrys future and the trump effect ford ceo mark fields will talk to us live from the detroit auto show. Look at the premarket. You already know we got to 19,999. 63 on friday. Bit of a weaker start on this monday morning. More squawk on the street from post nine after the break. Welcome back. A number of deals to tell you about this morning. Does it qualify for merger monday . Well, you can decide. The biggest of which is the decision by Veterinary Centers of america or vca inc. To sell out to the mars family. Now, when we hear mars you may think candy bars or wrigley c w chewing gum, but the fact is that perhaps as much as 50 and soon without a doubt more than 50 of this companys earnings come from pet care, pet food and things of that nature. A growing area that my colleague, mr. Cramer, knows a lot about. As for this deal this morning 9. 1 billion cash deal, that does include debt of about 1. 4 billion. If youre a vca shareholder, woof is the symbol. Youll get 93 a share. The multiple 18. 5 times last years ebitda. And that does rank as a significant multiple, the last deal done. Those smaller and a lot of these hospitals thats what they own, vca is about 800 pet hospitals and then also testing facilities, lab facilities, which are a key as you might imagine for pets because they dont talk and so you really have to do all sorts of tests to figure out what may be wrong with them. The last deal done, jim, was about 13 times. And, again, private equity been very involved in this. This will be the biggest player. Mars already owns banfield. That is in a lot of petsmarts. These are stand alones. Bob anton, the guy who runs this Company Founded it over 30 years ago has been running it all this time deciding this was the time to sell, im told they were approached at the end of november, a very significant premium above the current stock price. Again, that multiple being as it was they said we will take the money. He though will go on with his Management Team to continue to run this company as a part of mars. Which again you think candy but really you should be thinking pets. Yes, and iams. Yep. One of the things weve been emphasizing over and over again on mad money is the humanization of pets. Henry shine which thank you introduced me to which is diagnostic. Pets is probably one of the Fastest Growing secular story in the world and a lot of it has to do with the idea that we spend more money on pets than anyone realizes. This is a breakthrough deal because what it does is confirm that thesis. Ive liked vca for a long time, but my favorite has been idex. Had them on two weeks ago. This is not that great for them because theyd be competitors, but it does verify the industry is worth more. Vca a very fine company. The amount of money that we spend on hospitals remember, its not like medicare. This is cash in the barrel. Yeah, im learning that of course as a new owner of a puppy. Oh, my gosh. David, you might want to be it is unbelievable. Just two vet visits already, man, its brutal. David, let me tell you something. One of the things i like about vca is pet university. They have pet university. Its very good business. They have teaching hospitals. Online. Oh, okay, pets at home. But this is an explosive area. And i have to tell you that idex is the king. But the fact is that this woof verifies that people this is people sleeping with their pets. Thats been the big story. Right, the pet has moved or the animal moved from being on the farm to being in the yard to being on the couch to now sleeping in the bed. Yeah, mine sleep with me and its actually quite crowded in there. Bug, everest and lisa and me. Youve got two, right . Yeah, one of them snores. Its a terrible scene. While youre talking it is the auto show week. And Fiat Chrysler made some news this morning saying theyre going to invest 1 billion in u. S. Plants, create 2,000 jobs, three new jeeps, mostly michigan and ohio. The president elect tweeting a few seconds ago. Really . Says its finally happening, Fiat ChryslerJust Announced plans to invest 1 billion in michigan and ohio plants adding 2,000 jobs, this after waiting for his followup, ford said last week it will expand in michigan and u. S. Instead of building a billiondollar plant in mexico. Thank you ford and fiat c. Wow. This stuff is happening very quickly in terms of some folding, some not. Its not much of a stand because cruze isnt really imported here, but i do think some of this is working. Some of the, i dont know, really con the jawboning . Yeah. Its so much cheaper to make cars in mexico. Onetenth the cost in labor. Yeah. Overall cost about plant operating is 11 labor. What it is is currency. I think the president elect is beginning to understand currency. Im not i didnt mean that the way it sounded. Being understanding currency is the big issue with china, with europe, certainly with mexico with the peso at 21. The fact its not labor, what really does matter is this incredible, incredible advantage they have over the peso with the currency. And thats really the reason why youre seeing just the headlong rush down there to the areas where the japanese and germans completely love to dominate. And they ship right up through ksu and union pacific. Were going to talk to mark fields of ford in a few moments. First, lets get to the bond pits and check in with Rick Santelli at the cme in chicago. Good morning, rick. Good morning, carl. We are continuing to see a drift in rates and a drift in the dollar although the dollar has been a lot choppier than many would have thought especially for the new year. Look at intraday of ten, were down a half a dozen basis points. If you look at a oneweek chart, keep in mind, you know, we settled a year at 2. 44, trading now around 2. 37. Weve been a little lower in yield. Last weeks basically onemonth low yield close was 2. 34. Thats what traders are paying attention to against the backdrop of that big 2015 close right above 2. 25. Dollar index of course has been interesting but before we get to that, the spread between our tens and the overseas tens continues to narrow. Look at the chart since november 1st. Many are continuing to watch as the tug of war between the opposing policies by Central Banks is taking a bit of a toll on the marketplace. If we go back to Foreign Exchange, an early november chart tells you about erg you need to know. Since we went through 100 it really has been the type of formation where its two steps forward, one step back. And finally, lets look at the euro versus the dollar. Nothing cements the notion of where youre offsides better than this chart from november. 1. 04 clearly the line traders are going to protect themselves against in the trade. Carl, back to you. Thank you very much, Rick Santelli. When we come back, cramers mad dash, countdown to the opening bell, another look at the premarket on this monday. A lot more squawk on the street from the nyse straight ahead. One arge busineses the wlr e ev a about six and a half minutes before trading begins here on a brisk monday morning here in the northeast. Where are we headed . One of my favorite analysts on apple is Katie Huberty saying people are too focused on the nearterm supply chain, meaning the iphone 7 is not that strong. Shes talking about the iphone super cycle, usually fear that word its so bullish in china but cash repatriation, theres obviously a lot of hope there. And youve got a situation where u. S. Tax reform could help, but not as much as others. David, the main thing about this piece is we forget its a very cheap stock with a lot of catalysts. One of the things thats hurt the stock frankly is everybody recognizes that it didnt deliver. Tim cook obviously on paid salary kpcompensation was not what might have been. 118 you do get that breakout. This is a dow 20,000 stock, you need this stock to burst through. What about the journal today a column talking about their lack of traction in a. I. Despite originally with siri being seemingly ahead, they havent done it and this column argues they need to. I often find that these articles are well behind the times. We all know about google and what theyre doing. We all know about amazon and what theyre doing. So when i read that piece i did say, yes, thats verification of what we knew apple. Has apple really fallen behind . Apple has honed but some of the devices really are the amazon device is really quite exciting. A lot of people i know have got that. But what this says is stop worrying about nearterm concerns you hear about the 7 not doing that well. Focus on the 8. If you focus on the 8, then youve got a stock 12, 13 times earnings thats really, now get this, ten times ten times 2018. Ten times. All right. Well, thats not where the market is trading. Much higher multiple there. Well be focused on the opening bell a few minutes from now. E u ur tol fluebebe. s aat idtualde mt s . Heedgehe thiswim s pe ariad ier ers. Heedgehe thiswim s pe ariad ier d my. Yoedooubr. Ders, asclicks s pe ariad ier heagilnoe aru lyprprti isetenng t ananr d t. R neng ring reretimetrad a as ast heagilnoe ini adcave aru lyprprti ann isetenng t ananr d t. Youre watching cnbc squawk on the street live from the Financial Capital of the world. The opening bell in just about 90 seconds. Busy day, busy week as earnings season will kick off with the banks on friday. Pounds at a twomonth low which we mentioned. Rosengren, one of the great doves on the fed, not a voter, with some comments at the top of the hour saying the pace of normalization needs to accelerate this year. Unemployments at a target, inflation probably targets the end of 2017. Music to j. P. Morgans ears. Obviously you have a stock thats done a lot of heavy lifting dow 20,000, that really needs those rates up because it doesnt cost them