Championship on monday i am Carl Quintanilla with jim cramer and david faber earnings season kicks off. Davos. We begin with shutdown day three. Future points to a lower open. Plus, as carl says, it is merger monday. Drug maker sanefy has a great deal the eagles and tre set to face w england, patriots. Destiny verses dynasty obviously, it was remarkable kind of karma game once again. You could not hear a thing in the stadium. I could not hear my wife next to me a lot of that is the people are just nuts we are tired of it the town has always been an eagle town we are thrilled. The patriots have a lot of work the do they came back pretty well and dont want to dominate the discussion because i know we have a lot to talk about nick foles was our weakest and he was our strength. It is exciting to be a big fan. Carl and i are jealous, hes been there recently as a denver fan and a near jets fan, not so much well, we never won. I think we won 1960 but that was presuper bowl. Right we waited a while excited two weeks to go join every minute of the anticipation this says a lot i think the problem here is that we are tired of being who we are, right we are tired of it yep we were disrespected in 30 secon seconds in line. I dont know if they care. They dont even care yesterdays line moved from 3 to 3. 5. You know the nation just thinks we are a bunch of jokers at least when it cracks it is been kind of a downhill slide since that crack we got two weeks to prep, it is going to be a great super bowl of course, i will be going and i am going to have as much sleep as i did last time hopefully by then the government is open again, it is day three. The senate is scheduled to vote at noon. Lets get straight to cayla tausche in washington. It also would come with a pledge from Senate MajorityMitch Mcconnell to put up a vote for the next three weeks if there is not a bipartisan deal before then, mcconnell says he will make time for the schedule for immigration legislation. Lyndsey graham is part of the leading talk called quote, more than reasonable last night. The white house talks on those issues will not resume until the government reopens the democrats will be meeting separately to discuss their vote ahead of the vote. Mcconnell is expected to elaborate his speech where he made the pledge. And what changes between now and february 8th their votes are make or break and they know that with senator mccain out and two republicans like lily no. They only need two democrats there are other democrats taking part in a group of a couple of dozen senators trying to broke the immigration deal it depends on what folks signals this morning and whether they green light it coming in at 12 cayla, thank you for that a couple of things, lp point is out. The other is you are talking about 2 million federal workers in the economy with 150 million workers. I think it is a really different debate at this time. Typically, how much it is going to hurt the market how many people are hurt by this it is almost uniformed not that washington has been out of touch before. This is where people worrying about getting their tax returns or children and the idea of government now, the governments gigantic, what we find in our world is our world works our ceos work there is a consensus, theyre going to davos there is a consensus that our ceos want america to be strong i think a lot of americans are saying what is this about other than hurting people and thats different from the dialogue before which is why is it such a bipartisan conflict. It is kind of a united, are you guys kidding me . Just do what you have to do, get out of our faces sounds like you say the democrats are over playing their hands on illegal immigration bingo, i think america does not understand i think the arm forces are loved and the idea that they dont make a lot of money to begin with and sacrificing and congress and the president makes them sacrifice more. It makes no sense to people. When does the military not get paid, do we know were they allowed those and do they get to watch the game. Furloughed without pay and theyll be paid retroactively. Theyre defending us. This is gotten ridiculous and something we care about obviously and people who serve, they get hurt. I dont think anybody wins here. I think everyone is kind of saying wait a second, we have got to get the government to function and if you do another three weeks or five weeks, all theyre going to do is get in the way of what we are trying to accomplish here which is hire a lot of people in the private sector and pay people who work for the government there seems to be a willingness on apart of the investors to move on nothing to see here. Thats the case for a long time now. Washington made it where it is a bit of a comedy other than the debt limit which is real. Right we are not dealing with that, lets not confuse with the two. We got downgraded and that was a hideous time in the market when the s p. That was the end of the major ro rollover i am paying attention to it. It is earnings season but when this is done, we have to deal with the resolution. When you see things reported great number and it is immediately up it is not like people say um, wind is great. The country is not working the government is not. Halliburton is great number and taking advantage of amazing resources that congress is not taking away. I think tlas senhat there is a e that the u. S. Government is a second rate. All right, very true. Lets get to a couple of deals this morning that we should. Sure. Well stick with the ones thats in the biotech industry two big deals, celgene is buying june know. It is a little bit over 9 million and sanofi bying bioverativ, thats 11. 6 billion in cash. Lets start with celgene and going through some of the math for you. It is going to be diluted to ips in 2018 of 50 cents a share and expect for it to be additive and what they are calling incremental. There are reports of this. And fridays close despite there were plenty of reports out there. Transaction of juno of someone saying 2. 9 times peak sales number, otherwise 4. 4. It depends what uses your peak sales number we are talking about blood cancer thats been a focus for celgene and getting deals done of what it seems look, theyre trying to avoid what i see happening in oregon which lost their key drugs oregon going from celgene is coming down. I know, we spent a lot of time talking about valiant for a good reason which started to see significant progress botox is not going to be for a while. Allergan is bouncing off no one wants to be allergan. Sanofi does not want to be allealle allergan 105 as i told you, 11. 6 billion. On this one, there was not any news out and, get this, it is about 8. 4 times 2018 estimated revenue and put into perspective of what we just told you of peak revenues for the celgene deal, you see it much higher it is at least what they are saying of 2016 could close quickly, sanofi, they went after innovation, they failed there. They had decent franchise and orphan drugs and things of that nature the analysts that weighed in already, generally seemed positive and some questions of evaluations. Have anyone seen bioverativ products i have not. They have literally something so powerful. This is from biogene where people feel it is not enough they create avid lab i didnt think they worth that much given the fact that they are creatorcreators there and the aig deal, it is been the worst performing in major insurance company. Aig had problems with care, too. I think ge have to do another downgraded ge. Another 17 target they chose not to downgrade it yesterday with because of the nfl. The aig deal validus these deals can be quickly because they are not high ip deals. Aig have to go back to be ensured. It stands for under performance. Right it is been a hedge fund nightma nightmare. They should have been in travelers. Look at the move in these stocks there is a reason why to wake up on monday with the deal that you own these names. Whats with the weak up stuff. No, you spent the whole night they used cisco thats a rarity it is a rarity. Thats why in ci. There is no cisco i may have to do that you may need to do that by the way, vrs lead director is hank greenberg. Is that true . Thats been another real winner those of us knows okay, thats a premium. But, it reensures them well except for aig nice people some of the nicest people i have ever seen. As nice as the people that came in from minnesota last night to catch their team you dont need to rub it in now we have to watch them in their own town we invite them. They seem like a sweet guy. When we come back, no check out and no cash and no line. Amazons new go store is opening. Later on tim buckleys interview. You will want to get his insights in a moment of out performance. Where a rising middle class powers a booming auto industry. A leap into the digital era draws youthful populations to mobile banking and ecommerce. Trade and travel surge between emerging markets. Everyday our 1,100 investment professionals around the world search out opportunities for alpha. Partner with pgim, the Global Investment management businesses of prudential. [ click, keyboard clacking ] [ keyboard clacking ] [ click, keyboard clacking ] good questions lead to good answers. Our advisors can help you find both. Talk to one today and see why were bullish on the future. Yours. Amazons check out Free Grocery Stores opened to the public today it is known as amazon go customers are billed after leaving the store using credit card thats on file. The experience of shopping here, it feels like shoplifting that you are in there because you just walk out until you are notified of the payments moments later. I love the point in the article where the guy tried to steal and you could not. There is cameras it is not what i thought it would be it is cameras and not facial recognition. They took a lot longer than they thought. A lot of difficulty. The journal references being able to distinguish one type of yogurt and another which may have different price points, for example, somebodys grabbing them and holding their hands much of the container, it is not easy it reminds me when we heard of autonomous cars, you have to do trillions of calculations in a second i have to believe it is not an economic way whole foods, a lot of this is a quarter pound of this and half pound of that, how does that work i dont know the executive from the company talked to the journal says they have not ruled this out using in whole foods one day. I think there is something to be said of whole foods and character of people that working there. You know a lot of people work in the grub hub kitchen but you dont know theyre there grub hub is the biggest restaurant in the world. I do think this is once again, you read that the checkers have jobs and thats the real issue i nakoknow davos is going to be devoted a lot on it, too and how many jobs are wiped out by Technology People created the loop. It create a lot of jobs like over what . 100 years period there is gaps sometimes of that can be dislocations and of 30 years gaps where it is made up i think it is socio logical of what the story is the x revolution is the revolution thatll wipe out a lot of jobs. Well get to cramers mad dash and count down and take a look at the market on this monday, more squawk on the street straight ahead what we do every night is like something out of a strange dream. Except that the next morning. It all makes sense. Fedex powers Global Commerce with vast, farreaching networks. Deep knowledge of industries. And, yes. Maybe a little magic. Two,that was awful. Why are you so good at this . Had a coach in high school. Really helped me up my game. I had a coach. Math. Ooh. So, why dont traders have coaches . Who says they dont . Coach mcadoo you know, at td ameritrade, we offer free access to coaches and a full education curriculum just to help you improve your skills. Boom thats lesson one. Education to take your trading to the next level. Only with td ameritrade. Lrall right, we got about seven minutes or so before we start on trading monday morning. You want to talk about snap yes engagement is strong and survey is still mixed it is just very few players. You know where is he going to go yes i want to point out that this is been such a disappointment and they use the 13 price tag and people keep on saying no matter what it is over value there is a scarcity of properties that you can advertise on we know there is facebook fatigue and did we hear anything from yahoo and verizon they call it oath remember thats the name of the unit yes they have no momentum whatsoe r whatsoever it maybe change the way people view yahoo i am watching for that Everyone Wants to be constructive on snap they want to be but they dont have enough facts and thats right now of what i think of snap it is a holding pattern. I am looiking over your shoulders, what is that . Those are wrestlers wwe tonight in brooklyn of the 25th anniversary it is a big deal, they have a great Business Model this that charlotte . Yes, rick blairs daughter. Dont mess with that how do you like that . They were early in the ott product. Yes yes, if that transition and now they are firing all cylinders tonight thinking people looking at that company as a new model entertainment all right, with e ge got a lf things to get to this morning. Well take a look at mma story well take a look at mma story and we got xerox we have a question about your brokerage fees. Fees . What did you have in mind . I dont know. 4. 95 per trade . Uhhh and i was wondering if your brokerage offers some sort of guarantee . Guarantee . Where we can get our fees and commissions back if were not happy. So can you offer me what schwab is offering . Whats with all the questions . Ask your broker if theyre offering 4. 95 online equity trades and a satisfaction guarantee. If you dont like their answer, ask again at schwab. Thank you so much. Thank you so were a go . Yes we got a yes what does that mean for purchasing . Purchase. Lets do this. Got it. Book the flights hai si si ya ya ya what does that mean for us . We can get stuff. Whats it mean for shipping . Ship the goods. Youre a go you got the green light. That means go oh, yeah. Start saying yes to your companys best ideas. Were gonna hit our launch date scream thank you goodbye we help all types of businesses with money, tools and knowhow to get business done. American express open. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. You are watching cnbc squawk on the street, live from the Financial Capital of the world. A busy monday as we watch the Government Shutdown for the third day. Well be watching davos and earnings starting with netflix tonight which has beaten on the q 4 number the past five years. This is the first time the analysts have caught it. The question is, are they ahead of it . The upgrade is going require a statement by management look this cannot go on. We cannot add at this pace would be the way i would do it you cannot put on what they have to do. The discussion of new content will be important because of the belief thats it is too expensive, thats not the case literally the sign ups are so great and the movies are so great that they can release them in movie theaters and make a lot of money just as an analogy and everyone felt like they did not have the Balance Sheet to do it they can do it without a problem. 8 billion this year, it is a number hard to get your mind around sometimes of what theyll spend on content well, they have to make content serves locally everywhere it is big it is really big. As long as subscribers keep ongoing up worldwide, it works the International Story more important once again is more than domestics right the utility that i have been watching thats really hot first energy looks like elliott is there today. Hes been taking on companies thats been moving and not just when it comes up with a plan first energy can be like scam. There is the opening bell s p at the bottom of your screen it is wwe there. You see charlotte there and the phantom of opera celebrating their broadways longest show of all time it is incredible. Both of these are successful, long running plays wwe is often experience and its got a showmanship that people forget. I think theyll sell out tonight and it will be Bill Belichick. Well, they smile more although he did put up his arms yesterday. Well, coach pederson knows that it belongs to the team and not to him i liked that yeah, no one knows him, why he does not promote. Hes not out there wearing the hoodies, hes out there getting a job done i would not say Bill Belichick promotes it is interesting of all those worries of the hand and the problems among the coaches, sometimes i wonder if it is all just a gigantic head kick just to get in the head of our teams. They did it the Conspiracy Theory continues. We got two more weeks of this i know, i know. It is earnings season and we got apple and these are all things that takes the president of whats going on in minneapolis. You mention bernstein lowering cost on activist appointments appointed three new Board Members last week. It does occur to be active already in getting who knew that machines can bring a company to its knees whats incredible is they have their computers up to do. When you are up against home depot of the best in terms of all Different ThingsSilicon Valley can bring to retailers and you hang in there like lowes, thats like picking on someone thats not as good as patriots home depot maybe the best run of costco or walmart in the world there was a period, brief period yeah. Activism, we should mention xerox. I did bring it up last week and if i remember the conversation we had, i may have the story on friday darwin deason, remember the guy that started the company affiliated Company Service and sold to xerox and is now together with carl icahn he wrote one of his best letters that i have seen enough with this, dont do the fuji deal and get rid of the ceo and now deason joined and they are now together, representing 15 or so, they have formed a group, selecting four new individuals to the board of directors so says the letter thats out this morning from these two gentlemen and theyll do that at xeroxs annual meeting. They want Jake Jacobson out as ze ceo. They want the company to sell right, xerox have been so problematic for so long. A lot of time we talk about relevance. Is xeroxrelevant very hard. I dont blame them but i dont think it is necessary