Transcripts For CNBC Squawk On The Street 20150108

Investors looking to build off the markets first win for the new year. If you still want more mark lazry says energy debt could return 30 . Mixed bag for two retailers. Family dollar missed numbers, costco ahead of numbers. Outside of business, a live update on that manhunt in paris. Futures are up sharply as stocks aim for a second day of gains after the s p snapped a fiveday losing skid wednesday. Oil prices on the rise. All ahead of tomorrows big jobs number. Jobless claims did fall last week to 294,000. Jim, its more about costco today and chipotle at 700. Urban comps going positive. Raw costs coming down. At the same time more traffic, more larger ticket prices. People are spending again and i think thats the theme. I think there is way too much being talked about expenditures in oil patch are coming down. That icons traited in texas, louisiana and north dakota. Sunflower oil used to be the big oil in that state. Lets not lose sight of the fact disposable income 1,000 more in everybodys pocket is being spent at retail. After jc penney earlier in the week adp, is this the moment we are starting to realize what this fall in energy is meaning . Yes. If oil takes out 47 today and it could go down again because there is way too much being pumped, all those good things will be reversed. The hedge funds say if oil goes down sharply, you have to sell these stocks. Its dumb as a bag of hammers, but i respect their ability to think about anything smart because they are machines. Its 2001 space odyssey versus how. Weve been talking about the benefits of lower gas line prices reflected in the likes of retailers, casual dining. We are going to see bankruptcies and see companies missing their Interest Payments that may send queasy feelings through the market. Ive got a lot of emerging markets we know are going to be struggling. The rising dollar is hurting them badly. In europe they can benefit from the Lower Oil Prices but not as much. The euro keeps going down. Heres some interesting numbers. Last night sanchez and eagleford planned to spend 3 billion. They cut their capex to 2 billion. They raised Production Forecast 16 to 20 . Sanchez cutting its budget 1. 15 billion to 450 million raising Production Growth 40 . Continental cut 4. 6 billion to 2. 7 billion. They raised Production Growth. This is an incredible anomaly. They are spending less, focused on properties and spending more. If you think oil will stabilize, it doesnt make sense. There is no place to put it. People wonder what is the play in energy . His suggestion is debt. Here is lazry on kwauk this morning. Last year if you remember it all everybody talked about oil staying around 100 120. Now everybody saying its going to be around 50 or 60 this year. Next year 70 to 90. If thats correct, everything we are buying at 60 cents today is going to be worth par. If you just do the math youll make somewhere around 30 returns over the course of next two years. Too dangerous for your average investor . Oh my god, yes. Yeah. This shouldnt be said. Be careful. I dont disagree with any of the things you are saying. I think there will be major bankruptcies. If oil goes down to 40. We kept hearing 50 is the number. We passed through it. He was talking about 56. That is way too rosy. If you are a hedge fund you might get in and get out. Someone told me youve got to gee by puerto rican municipal bonds, its a cantmiss. It missed. High yield debt market is a very strange animal. Its illiquid. You see commercials, up good night to be in emerging debt. Its way too dangerous. Every time it correlates or you get screwed, for lack of a better term i think we can use that . There are stocks that will do well. What ive been hearing more often, guys taking a look at the equity side of the equation thinking about a cashrich oil company that is not in danger in any way and its stock has been down sharply, perhaps for the right reasons. Is it a time to step into the shares, not the debt . I think that is a nice call. My problem is there is a piece today in the papers about how some of these companies have to cut dividends. The guys were pumping like mad. They are going to cut capex. This is the wrong place to start speculating in oil. It is the right place to continue to buy chipotle. Its up a lot. Its going to be an alltime high. 700 premarket. Citi takes their target to 809 . Beef costs are coming down. They use natural organic. A lot of their costs are going to come down. These Companies Use to heat their buildings and stuff. You are not done with this group. I would like to have pulled back when oil starts going back down again, people are going to sell those stocks and then you buy them. Lets move on to retail. Family dollar did miss estimates with fiscal First Quarter results including 4 decline in comp store sales. Retailer says the quarter was challenging. That company in the process of converting to a strategy featuring everyday low prices. Costco beating expectations. Its total samestore sales were up 3 in december including a 5 jump in the usa. Costco strong with those december numbers. On Family Dollar the point is its getting acquired by dollar tree or by Dollar General if they get it together on the antitrust front. Are going to see that stock hang in there today. It does increase the down side. They get an opportunity to vote 23rd of january. Dollar tree can demand they hold the vote if they want to. Will it raise going in . Then there is some who say things are getting so bad there, theres going to be more upside for Dollar General or dollar tree when they start to run this thing. Thats the point. There is a boiler plate. Some people have to do the securities before we Start Talking about it . There is a boiler plate line going through Family Dollar releases. First quarter of fiscal year 2015 was very challenging. As we continue our transition from promotional merchandise to everyday low prices. This has to be the only retailer i know experiencing a promotional environment with gross margin pressure. I used to love these guys. Whoever takes them over if you and i took them over if we got in the dollar store business we could fix this. The only Silver Lining one analyst says is december comps improved through the two year and month, although two year and month was still negative. Thats been the running theme. Aro today down 9 but down 15 last year. American eagle down 2 on fewer promotions. Urban up 4 on a 3 estimate. When everyone wrote off urban. Anthropology is doing quite well. Weve got to go to Family Dollar and find out what the heck is going on. What are the promotional opportunities available to us . Either way, dollar tree or potentially Dollar General will own this thing. And there is so much work to be done. Every other retailer i talk to the figure you mentioned at the top of the show the cold weather, someone comes out and says youve got to buy deckers, of course. This is ugg weather. If tom brady wins this weekend and im not guaranteeing that he is the chief spokesman for ugg. The ravens win in new england, im not maybe you sell ugg today. If braisy loses, you buy it back. Did you see what brady said about playing in the cold this weekend . Im a blanking machine. Hes unafraid. We didnt mention costco which had five weeks up 5 18 weeks up 6 comp stores. They keep it going. Im getting numbers from jack moore. Family dollar the 2013 Holiday Season was challenged. Third quarter 14, our results continue but the economic challenge facing our core customer. Its a promotional environment intensified. Its time to go. Can you imagine . Get less quarters press relief. Is the jets general manager running this company in his spare time . He was doing something in his spare time. Unbelievable. On a much more serious note it is a day of mourning in france after 12 people were killed in yesterdays shootings of the offices of a french magazine. The manhunt continues today for two of the suspects in that attack. Hadley gamble is in paris with more. Reporter good morning, carl. A couple of blocks away from where we are standing is where the terrorist attacks took place. We heard from francis Prime Minister earlier today. He was saying he is worried the militants involved in yesterdays attack could strike again. I want to update you now. We are hearing reports on that manhunt for two suspects two brothers. They showed their pictures overnight. Apparently there are reports they were spotted at a gas station in north france about an hour outside of paris. I have to update you on another developing story. We heard from the french prosecutors office, hes been telling reporters that what happened this morning in the south of paris, a shootout where a policeman lost her life and one other was wounded. They are labeling that aterror attack. There has been no link to the attacks we saw yesterday. Again, another terror attack in paris in the last 24 hours. That makes two of them. This is a city under attack. Hadley gamble thanks. Reports they will turn off the lights at the eiffel tower tonight in memory of the victims from yesterday. When we come back a double dose of news. Google was not hoping for. Well fill you in. An Angel Investor who says yahoo would be making a huge mistake if it fires marissa meyer. Take one more look at the futures this morning. The bulls continue to regroup. More squawk on the street. Rtgage shouldnt be a problem your credit is in pretty good shape. Pretty good . I know i have a 798 fico score thanks to the tools and help on experian. Com. Kaboom. Well, i just have a few other questions. Chuck, the only other question you need to ask is, what else can you do for me . Ill just take a water. Get your credit swagger on. Become a member of experian credit tracker and find out your fico score powered by experian. Fico scores are used in 90 of credit decisions. 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. Shares of google downgraded this morning going to hold to buy. They do not see significant upside to the shares despite tremendous respect for the company and management team. Stat counter says google share of search traffic declined to 75. 3 in december down from 77. 5 in the previous month. Stifle talking about unlikely multiple expansion. Maturing core business. The best days may be behind them, in their words. My Charitable Trust sold google the other day because they are spending a lot. Didnt sell it all. If they monetize youtube stock will go higher. Facebook, another stock my trust owns taking a lot of share here. Google 17 times earnings. When you back out the cash that, multiple is shrinking. I dont want to write them off. If they decide tomorrow lets make a lot of money, they can do it. They can. They are dealing with this idea this analyst used to be at morgan stanley, pretty well respected. He is. Dealing with slowing search growth. That move from desktop to mobile which monetization rates are less. Secular changes taking place. Theres not like there is governance here or chance of return of capital. You are looking for the opportunities in the core business and or development of new core businesses if you will. To your point, this atlas product from facebook is something i hear about from a number of people. They are going to be able to provide advertisers with a set of analytics on the respected people across their devices. Facebook is starting and they cite they are taking 28 of incremental Global Digital ad dollars versus 22 in 2013. People laughed when they did instagram, 1 billion. People laughed at whats app. 7 million users now. These guys are spending a lot, but being more disciplined, i think. Think so . I do. They are trying to think three, five years out. In profits. Google is trying to think three, five years out in wonders. Wonders per share. Good way to put it. Stifle downgrading trip and priceline. A lot of price competition. One other thing important to mention, these guys have massive currency exposure. Carl mentioned the travel area with that euro the dollar getting stronger. Keep that in mind. We talked about it a number of times. Suddenly it seems to be coming into the consciousness of many investors. Google ebay these companies have a lot going on overseas. They are going to get hurt. How the market reacts is an open question. I dont think youll see multiple compression, but youll see lower numbers. I dont know how im able to look fondly about my fallen days of my father. He was 92 and followed us closely. He told me literally on his deathbed, be careful of that priceline. That guy from trivago with the blue eyes is killing him. I think he shaved recently. He looks cleaner. He said watch that guy. That guy is going to hurt priceline. You know what . That could be true. When we get back well get cramers mad dash. Take one more look at the premarket. Jim doesnt like up opens. Flight opened up 163 on the dow. More squawk on the street. I take prilosec otc each morning for my frequent heartburn. Because it gives me. Zero heartburn prilosec otc. The number 1 doctorrecommended frequent heartburn medicine for 9 straight years. One pill each morning. 24 hours. Zero heartburn. In my world, wall isnt a street. Return on investment isnt the only return im looking forward to. For some every dollar is earned with sweat, sacrifice, courage. Which is why usaa is honored to help our members with everything from investing for retirement to saving for college. Our commitment to current and former military members and their families is without equal. Start investing with as little as fifty dollars. Got eight minutes to go tilling opening bell. Oil in two ways. A lot of people saying one of the big winners of Lower Oil Prices are beer companies. There are very few earnings. Constellation reported today, corona. Blew the numbers away. Youll see the stock up gigantic. People will say people are going out more spending more on beer. This stock is the juggernaut. They were the winner in the Justice Department divestiture. If you bought it on the day they had the plan to meet the Justice Department objections to the original deal you are looking good. Last night i was hosting and our door kept opening. I had to buy everybody rounds of corona, had to buy them because the door kept opening. More business for constellation. Just get everybody drunk quickly then when wont notice. No one is going out anyway. Goldilocks left the building. Citi note this morning, downgrading you cant get in front of the oils. They are selling sell oasis, marathon. Now, jim . Really . Anadarko chesapeake. This thing called oil is going down in price. You have said this may be i remember you saying this may be when everybody gives up we will buy the companies that have good yields or companies with good Production Growth. I think a concho you get them increasing increasing. Everybody has to do with citi did. They are all sells. Until everyone decides i cant take it any more. When they say that i will say they cant take any more its time to buy. We havent gotten there. By no means at all. Eog they are sticking by. That has to be downgraded. Well watch the oil stocks as we do every day. A lot of other things to talk about. Opening bell next. You are watching cnbc squawk on the street live from the Financial Capital of the world. The opening bell in just under three minutes. Interesting day shaping up. Bullish action in the premarket for the second day in a row. Oil relatively stable. Yields relatively stable coming off those fed minutes yesterday. A lot of anecdotal evidence that Holiday Spending was pretty good consumer is maybe using a little of their discretionary income. I think a lot of whats happening is the sense germany is blinking. Talking about maybe doing something with greece. I think a lot of people feel merkel is out of step with some of the tragedy that happened in france. Meaning its time to start helping. One is about money and one business real life. Im saying the carryover from europe. Oil is ticking negative. The machines will sell stocks. You might get an opportunity here. The question still is a lot will be the focus on the ecb on the 22nd and what we get in terms of real details about quantitative easing program. What will they buy . Will they be buying anything and everything . How big will it be . I would argue rates there will certainly be important as it relates to our ten year as well. And when our Interest Rates go down, the machine sells stocks. There are hedge funds that short term field when Interest Rates go down and oil goes down, thats a sign of worldwide demand collapse. A few days later we get urban out fitters showing good numbers, jcpenney and people buy the retailers. The next day people rethink their sales. Its different people. Its the hedge funds taking quick action and the individuals and mutual funds saying this opportunity. Sets us up for a jobs number tomorrow. Claims today, 294. Adp was good. Typically under counts bls. You are going to see claims. Remember there are going to be layoffs. There are real layoffs coming in texas. You get a halliburton, baker hughes they dont need all these people. When you see this tremendous Capital Expenditure budget thats people. You just dont need as many people. The rig count will be 20 off their highs in a couple of months. Go back to that great Conference Call they told you below 70, its all bets are off. We are way below 70. What do you make of the idea after the fed says we might have said the word patient but that doesnt mean we wont height and with inflation under the target markets not convulsing on that. Its interesting. Every time the fed minutes have come out the last few years there was a big trade. People ignored it. A bigger global trend is happening. There is the s p at the top of your screen and look at the opening bell. Trust and fiduciary Management Services celebrating the recent listing of its Master Income etf. At the nasdaq its Sprouts Farmer Market participating in nasdaqs fit week. Sprouts introduced me to all the things our parentsed a in their pantry they are being depantried. If you look at bold house foods website that Campbell Soup bought. Its not rumored. The companies in the pantry like campbells general mills, when they bought annies, they kind of distanced themselves people think if people knew bold house was owned by campbells, i like their salad dressing. Kraft is so challenged. Anything not natural and organic is so challenged. Sprouts is telling you, youve got to buy our quinoa salsa. Ive had it. Thats all im going to say. Quinoa. I think i know how to spell it. If someone is going to do kenna. I dont like eating it but i do like saying it. Ford motor, that has to be one of the big gainers here. Starting to make his mark there. My trust owns general mills. Im pulling for mark fields jersey guy running a detroit company. I keep thinking about ford and the relationship to the lions. Meaning what . There is a disputed call that didnt go their way . Cowboys seem charmed to me. You think earthquakes in dallas was a coincidence . When the giants went to green bay and they come down to jordie versus that secondary dallas that is very weak. Yahoo in the news yet again. Im having an opportunity to take a look at this letter that was sent. As you send it over to me from starboard, starboard sent a letter previously, the activist hedge fund run by jeffrey smith. We know them from darden and many other situations. Last time we heard from them was when they were trying to get yahoo to consider the idea splitting this company sending out the core business into aol trying to free up the alibaba stake to preserve taxfree nature of that as opposed to at some point when they do sell it potentially having to pay taxes on it. We are still waiting to hear from yahoo on their own plan which could come fairly soon on what they are going to do to try to make it as tax efficient as possible. They continue to believe it must significantly reduce costs, explore a combination with aol. Using the usual Tim Armstrong must run the company . Yeah. Ive got to read more of this letter as i get a chance to do that. We are getting jcp news. Company telling us they will close about 40 stores in 2015. Its about 4 of the store base. Put that together with we long said we are overretailed in the country. The dead mall thesis. I felt if Eddie Lampert closed the bad sears and kmart jc penney is being forwardlooking. There are some in not good malls, close them. The Balance Sheet is not that bad after the numbers in december. Right. Back to yahoo to finish up there. They are coming out saying we keep hearing you may do a cash split off to separate the noncore minority ownership stakes namely yahoo japan and key, alibaba. Saying we dont believe that is the best way to go about creating value. Can i get back to fox . Sure if you want to. Stock is fine. Thank you. Stock was down sharply. Well be over here. Whats wrong . Nothing. Trying to bring up stop that went on. Yesterday fox didnt present at the citi group conference. Their people were in meetings. Stock was down 3 . The reason was people are getting worried about currency to come back to this theme. Particularly the idea they are going to hit this 8 billion ebitda target they have for 2016. Again, i just wanted to bring that up. Stock is up today, fox, about 0. 5 . It was down sharply yesterday. They were what i heard from people in the meetings getting people concerned about the strength of the dollar and what that will mean. Some of our key exports are movies. Google. They have a lot of international exposure. I thought you would talk about valeant being up big. They preannounced big numbers. Valeant is one of those companies you talk about. They put out good numbers this morning. Biogen had a wild morning. It was up more than currently. Meg terrell talking about good trials on these drugs, ms and optic nerve and the like. Celgene saying one of their favorites. Isis this morning, this is the good isis not the bad isis preannounces theyve got more cash than people thought. They want biotech. Biotech got too hot. Got to be careful. We are heading into the thick of conference season. There will be good news next week. You might get a chance to buy them again. With all that dow is up 181. We bark to s p 2045. Lets get to bob pisani on the floor. Another nice rally. All ten sectors in the up. Being led by health care. Europe on the up side. Buying yields quieter today. Oil on the downside a few pennies here. More positive environment for equities. Last night around 9 00 did you see this . S p futures moved 15 handles. Everybody seems to agree Charles Evans who is the head of the chicago Federal Reserve gave a speech saying it would be a catastrophe, his words, to raise rates. Evans is an uber dove. He is now a Voting Member of the fomc. Most traders seem to agree that was the overriding factor in the move to the up side. Weve been trying to figure out if lower gas prices and better employment would be helping retailers. We got an answer now. The answer is generally yes, a number. Five companies came out and raised guidance this morning. The Sales Numbers were pretty good here. American eagle sales were down 2 . They guided higher. Aeropostal sales down 9 . The loss they are going to have will not be as bad as previously indicated. Stage stores sales up 6. 5 . Better than expected. Cato sales up 6 . Zumiez sales better than expected. Youve got to believe lower gas and better employment numbers were factors in these guidance numbers. Even those who didnt raise guidance reported sales better than expected. Barnes and noble sales up 1. 7 . Pier one had good numbers up 8 . Urban outfitters up over 4 . I would love to hear from macys. Macys reported holiday sales right at this time last year but they havent indicated they would do it this year. Neither has target. We would love to hear some numbers here. Its cold out here. We are wearing coats on the floor of the new york stock exchange. That keeps dropping. 2 1 2 year lose. I queried our partners at kensho about this. What happens when we go into a cold snap where we go below 20 degrees . Weve got an answer. Nat gas is up 70 of the time two days after the start of a cold spell. We are waiting for nat gas to go up. Average return has been 1 in those two days after. I asked kensho what happened at the consumer electronic show are there any stocks that move on a regular basis . Corning is up 80 of the time two days after the end of the Consumer Electronics show. That ends friday. Next tuesday 80 of the time cornings been up and average return has been about 1 . Dow is up 200 points. Back to you. Where are those sellers that had to get out . Market must be bad. No demand for oil. Just a bunch of stupid people. People do stupid things. Drunken psycho as buffet would say. Sell or buy depending on his move. We accept it in sports. I was looking at the Marshawn Lynch Buffalo Bills trade. They had draft picks. That was a stupid thing. The bills did stupid things. Sellers did stupid things. It happens. It happens. Some people believe regulating those that deliver broadband in this country as utilities would be a stupid thing. Yesterday we heard from tom wheeler, the fcc chairman. Like the way i transitioned there . Got to do it somehow. You are good. Yesterday he delivered an important speech that got some attention. Not perhaps as much as might have been anticipated begin the focus on this issue since president obama not that long ago said i want to see broadband for everybody not regulated, not making it more expensive for one use than another. Socalled open internet philosophy, if you will. What does that mean for the providers of broadband . Namely the Cable Companies such as our own parent comcast. Here is what mr. Wheeler had to say in his speech yesterday. There was an effort made to say wheeler and the president are pulling in opposite directions on this which made for good headlines, but wasnt exactly reality. We are both pulling in the same direction which is no blocking no throttling of applications no paid prioritization and transparency. When we first heard from the president on this issue, you may recall many of the stocks declined and a markedly. They have come back since then and are up today. Why . Going on in the speech mr. Wheeler outlines what many will describe as a socalled light touch. Something perhaps that wont be as anathema to the industry as title two. It gets difficult to fully explain. A lot of this heads you down the comcast Time Warner Cable path. When will the deal close . What will that do to the economics of it . At this point many people anticipate begin the socalled expectation of light touch which was laid out by mr. Wheeler and will be february 5th when he presents this to the commission itself that they can live with it. Everybody is going to live with it. Will there be lawsuits . Most likely. You can live with this. This is not the most rash. Is this the John Chambers . I believe so. Youve got the Cable Companies pushing back. Perhaps caught unawares how much momentum is behind this. Good point. Lets head to the bond pits. Good morning, david. If we look at a tenyear chart, we did break the streak. We had seven sessions in a row over the holidays where yields are moving down prices moving up. Yesterday broke that streak with a higher yield close. As you look at the oneday chart you see a bit of a bias. The two day chart right at yesterdays high yields. This is a significant session. If you want to see the yield curve in action you can still see it aggressively. Look at oneyear chart of fives. Look in deference to that spike low on the 15th of october. Now look at a tenyear. Tenyear and 30 year cleared their zones with respect to history and lower yields. Twoday chart in the bunds and this is important. After two sessions of testing 43 we are moving up in yield. More importantly we are above yesterdays high yield. That means when traders walked on this floor and saw those bund charts and movements, they have become slight sellers on the spread today. We want to monitor how much work we do above and below the pivot which is 2 for 10s. Lets flip switches to foreign exchange. That euro slide continues and continues. If you look at a twoday chart of euros, we are under yesterdays lows. If you open it up to a chart starting on three, this area around 1. 18 is for the euro relationship with the dollar. Back to you. Thank you Rick Santelli. Relative stability this morning in crude. Jackie deangelis at the nymex for us. We are bouncing around the floot flat line. Traders calling the upside yesterday a cat bounce. It will be a volatile day. We did see technical buying yesterday. Perhaps Short Covering moving us up to the upside and news about rig suspensions also making traders think we could see stabilization here. Most people do think this is a temporary pause. Note out from barclays saying we could see wti go down to 45 this. Would be a temporary move to the up side. Interesting to watch wti versus brent. Brent trading lower at 50. 96. The other day we did dip under that 50 mark. To settle under 50 would send wti lower as well. Gasoline prices continue to the down side. Gas at the pump 2. 18. Back to you. Thank you, Jackie Deangelis. Tomorrow dont miss our exclusive interview with walgreen executive chairman jim skinner. Acting ceo stefano pessina. Dow almost back to 2050 s p. Take a look at the dow 30. All the components are in the green led by unh and home depot. Not a surprise begin the strong retail news this week. Not a bad performance on a second day of gains. Its finally dawning on people. Retal retail chipotle up 25 and costs going down. Only thing i caution people retail is really cold. If it stays like this you are not going to have as great numbers as i thought. I love this group and i love retail every time gasoline comes down. Its a big part of peoples disposable income. They dont give it to exxon. They give it to jc penney. Its what happens. Target does better in this environment. Walmart does better. Is it really that easy . Yes. You want it to be like a hedge fund say its bad for target because im smarter than the average bear . I want to buy the credit default swaps. Then ill end up three. Peter lynch, the great fund manager told you a lot in the gellen fund he told you a lot. I gave him money even when i was living in my car. If you outthink this you gave him money . Perhaps you would have been better off using it to find shelter. No. I used my Homeowners Insurance money. If you have collision, that doubles as homeowners. When we come back, stop trading with jim. Its time for cramer and stop trading. Morgan stanley note on Keurig Green Mountain saying the cold platform will add a gigantic amount to the valuation. I agree with this. When dr. Pepper endorsed the cold platform, what that said keurig will be the dominant appliance in your kitchen. Stock goes much higher. What is your take on what coke does . Coke has to buy them. This is his year to buy monster which is doing well in the Convenience Store because of the additional change in peoples pockets and keurig because it is a better mousetrap. What is on mad money tonight . We are talking to msnbcs medical correspondent. She understands immunotherapy. Just be careful. Well talk about how quickly mun lyly immunotherapy will be in your Doctors Office but how fabulous it will be. Did you see ballmer getting his groove on last night at the clippers game . Dancing to a performance by fergie . He was my College Roommate my sophomore year. I love him. We are talking millions of views on vine. Hes happy. He had that crisis at microsoft. I can never get enough of him dancing. It warms my heart, changes the whole outlook of my day. And there are more home days to come. At my reunion, our 35th trying to figure out what do you do . He had that kind of angst. He is so happy now. Lennon said it. If the rich are unhappy, its their own fault. This man has gotten happy. Love that john lennon. When are you going to get it . We are joking. See you tonight. Jim cramer mad money 6 00 p. M. [container door opening] what makes it an suv is what you can get into it. [container door closing] what makes it an nx is what you can get out of it. Introducing the firstever lexus nx turbo and hybrid. Once you go beyond utility theres no going back. Youre driving along, having a perfectly nice day, when out of nowhere a pickup truck slams into your brand new car. One second it wasnt there and the next second. Boom youve had your first accident. Now you have to make your first claim. So you talk to your Insurance Company and. Boom youre blindsided for a second time. They wont give you enough money to replace your brand new car. Dont those people know youre already shaken up . Liberty mutuals new car replacement will pay for the entire value of your car plus depreciation. 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What they have to say about their recent merger and plans for the footer. 9 45 a. M. Tomorrow. We are watching this market up triple digits. 235 on the dow. Stocks heading for a second day at strong gains. Oil prices as we can see are beginning to firm up here. Brent crude remaining slightly above 50 a barrel. How are these factors weighing on sentiment . Lets bring in chief u. S. Economist here at mizzou securities along with stephen misoka at web bush equity management. Are we over that new years funk coming into 2015 with five sessions of losses . Can we kiss that volatility goodbye . I think well see the markets trend higher the next few days. Well see the market continue to move higher this year. As long as Interest Rates stay where theyre at and with the ten year being around 2 and the 30 year being slightly over 2 it makes stocks compelling. Low Interest Rates are the mothers milk of the stock market. I see no reason in the foreseeable future for the markets to do anything but go up. Do you see this driven by the fed . Interesting to see Charlie Evans comments Federal Reserve president of chicago saying it would be a catastrophe to look at higher Interest Rates. Does that give you comfort . Does that soothe you and think thats behind the rally . The equity market likes the fact Interest Rates will remain stable. There isnt that much upward pressure at long term rates. I think what Charlie Evans is trying to get to is the fact a lot of this economy is the result of financial engineering. The concern the fed will have with its process of normalizing rates is how do you contain expectations of forward rates in an environment where you want to lift rates a little bit . Thats never happened before. Thats the problem. Markets tend to run quickly. They tend to discount all the move right up in front. For the fed, the hard part igs trying to make the markets understand its not going to be the traditional type rate hikes they have dobne historically. Thats why i think theyll come later than sooner. We have to get people comfortable that this economy is well on the way to 3 plus growth on a sustainable basis. You dont think we are there yet . No. We had two quarters of good growth against a weak First Quarter. Average for this year if we have 3 in the Fourth Quarter is going to be 2. 5 . Thats where weve been on average over the last five years. What about the notion a lot of the members saw april, something as early as april . A good number of those members rolled off the voting side of the equation. When you look at the members on in terms of the voting side its later than sooner. The next move will be a rate hike. We are arguing over the timing. Begin global deflationary pressures and Global Growth coming off rapidly, the Federal Reserve has the opportunity to let this thing get moving. I think thats what you are going to try to see in the equity market as we go forward. You glided over the fact that the lock term rates are where they are. You said because the tenyear at 2 and 30 year at 2. 5 there is no choice but to be in stocks. For a lot of people the bigger question is why have we had this huge rally into fixed income at the start of the year . Why did we push the yields on the tenyear below 2 . Does that indicate this discussion about Central Banks is almost irrelevant . They lost control of the situation generally . They cant create inflation . They cant create growth and its only a matter of time before that feeds through the conversation we are having in this country . I think largely Central Banks have been unsuccessful creating velocity of money. They provided lots of money. The velocity of money is very low. Its not driven by our central bank. Its driven by the japanese and ecb has been riding this with aggressive Monetary Policy or presumption of aggressive Monetary Policy which created a vast currency differential. Can the fed raise rates and see a greater differential between the dollar and euro and dollar and yen we have today . They are quite concerned about trying to raise rates. Currency is quite high. I bought that. Ive been buying that for months and saying that on the television. The reason treasury rates are so low because the ecb is threatening to move rates lower. That pushed european rates down and people are rushing into treasuries because they see value. The problem with that argument now starts with the fact that i dont think the European Central bank can launch massive qe. The rates have dived to the floor because there is realization that fixed income is around the world and equity markets still dont believe. I think there is a lot of truth in that. The economy in europe is weak. Certainly the economy in china is weakening and japan is note doing well either. That is adding fuel to the fire you speak of. At the end of the day, i still think even though fixed income markets rallied considerably equity markets will continue to rally. All of this currency has to go somewhere. Thats where its going. Its going into the fixed income market and going into equities. That processes will continue in my opinion. Going into equities today. Thank you, steve. Dow up almost 240 points. The s p 500 good for a gain right now of 1. 3 . Steve, thank you to you, as well. Jobless claims number today adding to weaker relatively strong Economic Data in this country. Numbers arent rosy for the rest of the world. Steve liesman is back from hq with a look at tail winds and head winds facing growth here. Picking up on the conversation you were having. That market which goes down by 500 and comes back. What are the forces affecting what we are calling here air u. S. Which is the u. S. Economy. Take a look at the wedheadwinds and tailwinds. Global weakness is whats happening in europe and china. Something acting as a headwind against the u. S. Economy. Global uncertainty. You can use that phrase as a proxy for everything you were talking about. The Exchange Rate differentials and all what it to whats happening in the middle east these days as well as paris. Something that gives investors pause, slows the economy down. What else is out there . This is where it gets interesting. This is going to show up later as a tailwind. Right now, its also a headwind in the sense it creates uncertainty about leverage in this system. Uncertainty about regional economics in the United States. Overall the effect on the United States. Finally, simon was talking about this. I think he is right. Low inflation is going to show up as a tailwind in a second. Is it a proxy for concern about overall growth . Lets take a look at the tailwinds the United States has. Job growth has to be one. We had several good job reports. Adp, jobless claims Small Business jobs report all looking good. That is a big tailwind for the United States in terms of incomes and Consumer Spending. Obviously, all these low rates out there, simon mentioned that as a possible headwind. It does Lower Consumer cost and debt. Then there is Lower Oil Prices that should help Consumer Spending going ahead. Of course there is lower inflation. I think that is one of the reasons why we have this back and forth market. Some of the same thing acting as headwinds against the United States and economy. Also act as tailwinds. It depends on what side of the bed the market wakes up on as to whether or not it sees some of these things out there as headwinds or tailwinds. Thats why so many people are expecting more volatility no matter with i way they think the direction the markets are going. Thank you, steve. Want to take you to washington. The Senate Energy and Natural Resources committee is doing its markup of the keystone xl pipeline bill. Expected to clear that committee and head to the floor for a vote. We dont know when that will be. The house is set to vote on its version of the bill tomorrow. This despite a voto threat from the white house. Keystone, as you can see, shaping up to be the first showdown here between the president and the gopcontrolled 114th congress. A lot of people say it doesnt matter since the white house said its going to veto it. Unless some democrats defect. Depends how many if those 34 will stick with the president. It will get interesting. Dow is up 246 now. The stock soaring on news of an experimental job reducing pelvic pain in women. This is the leading cause of infertility. Neurocrine trading up 33 . Abbvie trading up also. Well get a live report from paris with the latest on the situation there. Well be joined by a former fbi special agent who is a member of the joint Terrorism Task force. Youre looking for a loan . Hows your credit . I know i have an 810 fico score, thanks to the tools and help on experian. Com. And your big idea is hot dogs shaped like hamburgers . Nope. Hamburgers shaped like hot dogs. Thats not really in our wheelhouse. You dont put it in a wheelhouse. You put it in your mouth. Get your credit swagger on. Become a member of experian credit tracker and find out your fico score powered by experian. Fico scores are used in 90 of credit decisions. Police descending on an area 50 miles northeast of paris after a possible sighting of the two suspects wanted in connection with the Charlie Hedbo shooting. Reporter Security Forces are closing in on two suspects with a part in the attack two blocks from where i am standing. Security guards are searching going from farms to homes in towns 1 1 2 hours north of paris. The last sighting of these two suspected gunmen was at a petrol station about 50 miles outside of the city according to reports. These men suspected in these attacks are in their early 30s. They were known to french intelligence officials before these attacks took place, according to reuters. We understand these men are brothers. A third suspect in these attacks already turned himself into police. Another attack took place this morning. Its apparently unlinked to the attacks we saw yesterday at the officers of charlie hebdo. That would mean two terror attacks in paris in the last 24 hours. Thank you for that hadley gamble from paris. The dow is up 254 points. The dow is now positive for 2015 after it crossed 17,823. S p is not quite there. It needs to get to 2058. 90. On that situation in paris, lets bring in a former fbi agent, now chief operating office er officer with a security firm. The information coming from paris has been remarkably murky. It does appear this can be traced back to al qaeda in yemen. Characterize how important that is and why. Well you are right. The information is a bit murky. The Law Enforcement authorities at this point have to be very careful about how much information they release and when. And find that balance of getting the information to the public so they can get the publics assistance but not tip their hand to the guys on the loose on this manhunt. We saw this with the times square bombing here. When he fled the scene and there was a 24hour manhunt was listening to the media and was able to plot his escape route and almost did escape because he was listening to what Law Enforcement was doing. Thats one of the reasons the information is murky. The fact that these guys whether they were affiliated with an al qaeda group, al qaeda in yemen or islamic or had training with isis thats not the most important thing. Weve seen them move very tactically. Appeared they had training. In my opinion they did some reconnaissance of the target. They knew exactly who they were going for. This bears the hallmark of an al qaedalike attack. Richard haass called it a new brand of retail terrorism in which either through isis you can be encouraged to do this on your own by being begin a playbook or go to yemen where you were trained in external operations. That is an important distinction . Sure. It makes it that much harder for Law Enforcement when people are selfradicalizing and training themselves, not confiding with other people about their plans. Then all of a sudden one day they wake up and take action as we saw for example in australia and canada. These things come almost without warning. Again, this situation is a bit different. These guys appear to have a plan, some training maybe even a support network. I wouldnt put them at the level of 9 11 but they were a bit more sophisticated than these oneoff lone wolf attacks weve seen in new york and australia and canada and elsewhere. How long do you think a manhunt like this is going to take . Obviously, they are the most wanted men in france right now. The longer it takes, what does that tell you . The Law Enforcement authorities are getting in so much information. These guys are the most wanted people probably in the world right now. There are a lot of citizens that are going to be calling in saying i saw them here i saw them there, well meaning, but many of those reports are going to be false. Youve i got to follow up on those leads. Right now it appears there is an area of focus where theyve got something cordoned off. I dont know if its a building, a house or what. They seem to be focusing on that. Its too early to get excited that. Could turn out to be a dry hole and it would be on to the next positive lead. No doubt they are getting a lot of information not only from the general public but from cooperators inside human Intelligence Networks other friendly ally Intelligence Networks. Everybody is working together on this. Im confident theyll be caught soon. What about the broader question. We know the authorities here and in europe were on the watch for this. Of those that travel to the yemen or somewhere abroad to get trained and come back again under passports which give them access to the countries they want to set up in. Where are we on ensuring we are at maximum repellant ability for that to happen on both sides of the atlantic . This is extremely tough. Its even more of a problem for europe because weve seen the number of foreign fighters that have left from france from uk scandinavia that have gone over to fight alongside isis and many of whom have come back presumably with a level of training and also kind of that fortified mindset, if you will which makes them extremely dangerous. Less so for those in the United States. Our numbers are a lot smaller. Again, this is one of the biggest problems that the western world faces is that we have freedom of movement. We cant just take somebodys passport away without due cause. Again, how do you read peoples minds when they travel to turkey there are he going to visit a relative or go to turkey because they want to slip into syria and take up arms alongside isis . Very challenging for Law Enforcement. Thats where they have to build up these Intelligence Networks particularly human Intelligence Networks to try to get the upper hand and advantage to figure out what the intention is when somebody travels abroad to these countries. We are highly attuned to any developments out of paris or france, for that matter today. Thank you for your time. Thank you. Up next on the program, yahoo gaining more ground on search traffic from google. Shares of google down now more than 5 in the last week. Is the stock one you should give up on for the year . Do you have something for pain . I have bayer aspirin. Im not having a heart attack, its my back. I mean bayer back body. It works great for pain. Bayer back body provides effective relief for your tough pain. Better . Yeah. Thanks for the tip these ally bank ira cds really do sound like a sure thing but im a bit skeptical of sure things. Whys that . Look what daddys got. Ahhhhhhhhhh growth you can count on from the bank where no branches equals great rates. Google may be feeling the effects of the fire fox deal with yahoo. Google shares falling from to 75. 3 in november. According to stat counter. The market researcher warning of a greater impact if apple drops google from its safari browser. Analysts at stifle downgrading google to hold saying the best days for its shares are behind it. Joining us is s p capital Scott Kessler. Good morning, simon. Would you agree . Are the best days behind google . I think we have to parse that. I think its fair to say google faces pretty significant challenges and head winds right now. In terms of the stock, the shares had a difficult 21. 4 given the stock was down last year with a lot of internet stocks performing well. We see google as a nice value opportunity right here. We have a strong buy recommendation on shares. We lost 100 over the last couple of months about 70 billion of market cap. That was how they ended the year. How do you argue its a strong buy now begin where the market seems to be heading . Right. I was always taught you buy low and sell high. Our view at this stage is that people are obviously concerned, theyve seen a number of these developments or speculative updates. The stock is obviously not reacted well. People now are kind of reevaluating google. The reality is you highlighted a couple hundred basis point narrowing in market share, but google still according to the data you referenced has 3 4 of the market. This sounds somewhat like a minor issue being exaggerated with a significant decline in the stock price. Want to ask you about another stock underperformer in technology in 2014. That would be twitter. Looks like you like it. You expect it to outperform the s p. You are not worried they sold 20 million of the stock since november . The way we think about twitter, before the stock became publically traded in 2013 we actually indicated we saw risks. We initiated coverage with a sell. The stock obviously performed very poorly last year. We became incrementally more positive as the stock declined. Now at this level, theres a lot of scuttlebutt about dick costolo. There is no dumbing it down. Twitter had challenges. If you look at the franchise, if you look at the Revenue Growth which a lot of people forget this is a company over the last number of quarters doubled its revenues consistently. Then you look at the fact that there are a number of tailwinds including video that could be beneficial to twitter. It seems to us like the sentiment is negative and people arent rewarding twitter for some of the growth they generated. We will see. Thank you, Scott Kessler joining us from s p capital iq. Thanks a lot. Straight ahead on the show check out stocks in rally mode. A strong comeback for the dow up almost 250 points. It is now positive. Art cashin will be here live to break down what is going on across markets. Welcome back to squawk on the street. Im Jackie Deangelis from the nymex. Department of energy out with its weekly Natural Gas Storage report. A withdrawal of 131 billion cubic feet. More than traders were expecting. Yet less than the fiveyear average. Prices popped about three cents. We are still under 3. This is very significant. 30 lower on nat gas prices in the last year. 20 lower in the last month. A lot of people asking why we are seeing such declines when weve got the coldest week of the winter coming up. Also the fact we are in the winter season. It comes down to the pipelines. Utility Companies Getting gas where it needs to go. Getting it out of the ground more efficiently. People wondering why they are not seeing this reflected in their bills, per se. Thats because of the overhead costs of the Utility Companies and the fact they bought their nat gas probably at higher prices in the spot market. It takes a while to trickle down to consumers. Thank you, jackie. Lets talk more about the impact of energy and todays stellar rally. Art cashin joins us director of floor operations at ubs financial services. Are we still at the mercy of oil when it comes to this big bounce in equities . I think you are. Not directly simple down tick. Youve i got to see signs of destabilization again. It looks like it stabilized over the last two days. That allowed an oversold rally to kick into high gear here. Ive got resistance in the s p, up around 2058. 61. Otherwise the market looks fine. You dont look for oil just to down tick. You look for it to maybe not go back into freefall. The other factor that people are paying close attention to today is this decline in the euro. Its been a dramatic one. We are at 1. 17. A signal there are Great Expectations for mario draghi to do something. He is going to have to pull a rabbit out of his hat in order to keep this trade going, right . Yeah. Im not sure there is a rabbit in there. The concern is he might wind up giving advance notice of qe because the greek elections are almost immediately after. He might not want to wade into the Banking System and then have some surprise result that pulls against it. The other thing is this unfortunate can i interrupt . I want to nail that correlation you are making there. When we say the euro is down mate not be because qe is on the way, it may be they fail at qe and growth is so bad in europe. That can be where we are heading. Those correlations may have changed to the point you are making. I agree. I said structurally it is very very difficult for draghi to mount any kind of really cohesive qe operation over there. The other thing is unfortunately this terrorist event in france yesterday is also going to get involved in the politics of europe. You will see a good deal more zenaphobia. We have foreigners in our land. Elections will probably swing to the right which can put further pressure on the euro. Some of those rightleaning parties are not big fans of continuing in europe. I think some of the coverage in this country is naive of what is happening in paris. If there were an election held tomorrow marin lepin would be the next president of france. There is a strong racial element beyond the obvious terrorism angle in france at the moment. Across germany, indeed. It spreads with this antiarab feeling that may transfer into the polls and be seen as antieuropean and antieurope. Iryoure right about the latency thats been this. This will push it forward this is not an inconvenience, we feel threatened. People will get the put call arguing this yale isnt to be purely trusted, still more work to be done on the bottoming pros you believe it . I would say the rally is 95 technical. Very effective. We went down through the 50 day and 100 day in a couple of cases. Reversed in a rocket shot. We are up on the year now after a pretty dreadful three days. The first five days are looking adequate at this point. Watch for oil. If it shows signs of destabilization and the rally is as frail as some people think, it will become painfully evident. Warning with tomorrows jobs report. What is the feeling how strong this number will be the last one for the best year of job growth since 1999 . Does it matter now that the fed is so focused on the inflation part of its mandate . It will matter. Youve got to look at the hourly wages and see how they are coming in. Compare that to the average workweek. Are they working the same work or longer hours and not paying out more by hiring them . There is a key point that employment looks better but its not quality jobs. Its because walmart is doing three shifts of people for 26 hours instead of people for 40 hours. It may look good on the surface. Now you are sounding like Elizabeth Warren this week. Thank you. Ill stay out of that camp. Well do that tomorrow. Good to see you as always. Thanks for joining us. Coming up gm ceo mary berra speaking in detroit about the past year calls and restructuring plans. Well give you the important headlines in a few minutes. The cutting of prices on the cadillac. Our back. Your friends have your back. Your dogs definitely got your back. But whos got your back when you need legal help . We do. Were legalzoom, and over the last 10 years weve helped millions of people protect their families and run their businesses. We have the right people onhand to answer your questions, backed by a trusted network of attorneys. So visit us today for legal help you can count on. Legalzoom. Legal help is here. Breaking news from detroit. General motors raised expectations for sales in the u. S. For 2015. Gm expecting Auto Industry sales of 16. 5 to 17 million in 2015. Says Industry Sales forecast is for a slight raise from last years strong sales of 16. 52 million. Gm expecting those gains in u. S. Auto sales to continue in 2015. Mary berra the ceo speaking in detroit. Well take you there live. Phil lebeau is there, in a few moments. 244 points higher on the dow. Materials, i. T. And Energy Leading us higher. Information Technology Stocks are one of the best performers in the s p 500 this morning, leading the way Higher Semiconductor stocks. Micron nvidia. Micron showed the fastest Revenue Growth among chip makers in 2014. Thank you very much. Lets take to you a very cold chicago with Rick Santelli. Thank you. Id like to welcome first on the Santelli Exchange professor lipson from university of chicago. Political science. Absolutely. You are a god send. As the 114th congress came into existence this week, much of the talk is about whats going on with the president , with energy vetoes. That is all important. Theres other issues that are lingering that you are paying more close attention to maybe you can fill me in. I think one of the big issues is whether or not some areas of the government that are supposed to be absolutely outside of politics particularly the Internal Revenue service have been used inappropriately by the white house. Im not saying they have but we dont know. You are not necessarily just talking about the notion, which i found very strange where the irs said we may have been targeting conservatives. They brought it up. As we went through chapters of this book with little information, we came to a point where the president went to get to the bottom of it to not a a problem going on. We dont know if there is nothing or droppings all over the place. The president said there was nothing there. Recently, theres been a Court Decision that says the irs has now admitted 2,500 separate email contacts with the white house. They are refusing to turn over those documents, despite a court order we need to know whats in them. In turns of turning those over. There is a catch22. Maybe you can say it because every time i read it i scratch my head. In catch22 in the novel, you could only get out of combat in one way. That was by filling out a form that said you were too crazy to go into combat. If you filled out the form you couldnt be crazy. Thats what the irs policy is. They are saying they cannot turn over information that they may have discovered or turned over to others illegally about you, because it would be illegal to turn over the information about you. In the last minute we have why is this important to most americans . You told me beforehand and we want everybody to understand that you are a fiscal conservative but a social liberal. I would define myself the same way. Why should americans be concerned about this dynamic with the irs and government . Two reasons. First is we count on the irs to be apolitical. The second reason is americas tax system is voluntary. I pay because i think you are paying because i think other people are paying because its a fair system. If this system has been politically weaponized, we need to know it. If it hasnt been begin all the allegations out there, we need to know that too. As these cases wind through the courts i want you to come back and be our interpreter. You think its a big issue, i think its a big issue. I dont think much of the media thinks its a big issue. Thank you for taking the time. Back to you. Thank you so much Rick Santelli in chicago. When we come back, new year, new you. Equinox getting a big boost thanks to the new years resolutions. How does the brickandmorter compete with the wave of new fitness Tech Products . She inspires you. No question about that. 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If you have any sudden decrease or loss in hearing or vision or any allergic reactions like rash, hives, swelling of the lips tongue or throat or difficulty breathing or swallowing, stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a free 30tablet trial. The consumer electronic show wrapping up in vegas. The fitness wearables have taken over a huge part of the phone. The yoga mat that will help you pose correctly. Workout app that provides coaching and the wrist band that will vibrate on your wrist if it thinks you are sitting still too long. The ceo of equinox fitness. We talked about this a year ago. Its gaining more momentum. People are starting to understand more about what it can mean for them and what it can mean as a business opportunity. When we spoke before it was about you harnessing that for the top professionals in the gym. This seems more of a democratization, anything that will take it to the masses not those paying for training. I think initially the experts or the people who are more passionate about anything in any industry are going to latch on first. Then if its successful it will start getting traction along a larger population. Thats whats happening now, which i think is great because more people are focused on health and fitness and so we talk about this all last year. We decided as a strategy were not going to get into the business of developing devices. There is lots of companies doing that to dreefs success. What most dont know is how to use that information. What information is relevant and how to use it. Weve created our own platform which were the first to operate in the United States to integrate a health kit. I was there at the launch of health kit and when apple did their coming out party last fall. The end result is we can traek our members information and this year well start giving customized informations about what programs and services are better suited for them as well as content to our online magazine cue. So many different products it is almost dizzying how many different step trackers and heart monitors there are right now. And every year it becomes even bigger. Any that stand out to you as the winners . I think the big wait and see is what does apple do with health kit. Apple is apple so we think they will be big players and we know how they are approaching it. We have a close relationship there. The over one is doctor the off band which ive used in the past. The other is the early stage. The software is not there. The hardware is not there. So it will take time but by 2016 they are predicting over 60 million devices will be sold. In fairness most training isnt brain surgery and it should be fairly easy to replicate the type of advice or program your average trainer would give you. Once you can take in the various metrics of how a person is, what their weight is how they perform, how flexible they are, the Information Technology should be able to supply the rest possibly in video form. Im wondering how that cuts out your premium proposition of the personal training. There is no replacement for hands on expertise and experience. And we think as all additive and complementary. Because our population, the Luxury Consumer wants the information to better inform how they should train when they are with us and even when they are without us. So our philosophy is were going to help our members be always on 24 7 in terms of thinking about that information. Weve had Residential Real Estate brokers on worrying a little about the volume in residential. I wonder if you think commercial if there is going to be any relief in the way of rents in anything else. That would be great. Havent seen it yet. Basically the majority of the markets like markets and new york and San Francisco are on fire and have been landlord favorable. So as the tenant there is a price to pay. Is it putting a ceiling top size of gyms . No. Youre connected related in fairness. Part and parcel of you selling the real estate around them or renting the apartments a good equinox brand can rent a lot of apartments. Absolute i. And where i makes sense well coordinate. I would ask about the ipo but ever time i do that you roll your eyes and say you always ask me about that. The ceo of equinox fitness. And the speaking in detroit about the outlook for the auto maker going forward. Weve got industry estimates for 2015. Looking a little better than last year. Good morning phil. And really that is the news so far from mary barra as she gives her what you might call annual round table speech. Its been almost a year since she took over as ceo of gm. Shes talking about the challenges they have faced in the last year and challenges they face this year. But the most important thing so far has to do with the companys outlook for the u. S. Auto industry in 2015 sales. Here is what she had to say. I see a lot of positives as we start 2015. First, it looks that sales will be strong in the United States and china. Again, our two biggest markets. And in the u. S. We expect continued steady growth in the industry. And we believe it is going to come in somewhere between 16. 5 million and 17 million units. And if you had to say pinpoint probably right in the middle of that range. So lets put that prediction or estimate from mary barra in perspective. If you look back to where sales bonded out in 2009 to last year at 16. 5 million. Their prediction of sales of almost 17 million is roughly in line where are everybody else in the industry is at. We heard from a few they expect to top 17 million for if First Time Since 2001. Mary barra at the very beginning got the issue of safety recalls the challenges they have had this last year out of the way by saying look weve got more work to do. Getting by is not my idea of winning. Were going to head back up. And well have more comments from her later on. Thanks for keeping us up to date and the stock up about 1. 3 with the broader market. Lets send to it the Kayla Tausche on the floor with a look at whats coming up next on squawk alley. Hey sarah. The markets are rallying, second day in a row. Now positive for 20u is a but two days does not a trend make. Well tell you where to find value in the market right now. Google is not part of todays rally, hitting a low it hasnt seen in more than a year as news says that maybe its dominance in search could be eroding. Well discuss the future. And yahoo getting a very very spicy letter from investor starboard about what it should do with its cash and stake in alibaba. Well talk about how much time yahoo has to make that decision. All of that is up next on squawk alley. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. One day left for you to nail the number. Dont forget to tweet us your predictions for the december non farm cables report. Tomorrow morning at 8 30. Tweet us nail the number and the winner whoever comes closest will receive this cnbc umbrella autographed by all of us. You will have until one minute before the jobs release tomorrow to tweet us. Good luck. In the meantime one held of a rally. Up over 270 points. Lets hand to it squawk alley. Good morning. 8 00 a. M. At google in mountain view, california. 11 00 a. M. Here on wall street and squawk alley is live. Stocks are back in black for 2015. Joining us this henry blodget, good morning to you. Made his way back from ces. Wasted no time. Jon fortt is on his way back from ces today. But with us as always Kayla Tausche on post nine. On a day where the dow is once again positive for 2015. S p less tan a point