President s address and the monthly jobs number. We got shares of dr. Pepper and keurig is buying the maker apple continues to move in the opposite direction of the market another report of the iphone weakness as the month heads into the home stretch, s p 500 on track for the best january since 87 busy earnings calendar including results from all, you got the president s address tomorrow night, yellens last meeting as chair of the central bank and the jobs number on friday. 271 is getting peoples attention. There is some theory that yellen is more hawkish on this run. She ought to be hawkish i look for weakness in this economy and i cannot find it consumer is strong and corporate spending i got to tell you, tax reform is working. The more ceos that i speak to or everybody in the Overall Community lets call it the more you realize, there is still not in any way full appreciation and even only a slight of appreciation at this point for what the ramifications are going to be. Many words are still unknown most of which are thought to be appositive for pbusiness i am coming at it from a business ratio, as things unfold, we find that the numbers are, the earnings per share for 2018 is much larger. I think thats what they want to be able to believe say that we can be able to stick with the market when does the risk free rate star starts they might tell. What you said about janet yellen of 2. 7, how can we not be at 3 remember when we are at 3 when the economy is not strong . This economy is really strong. You think so . I think it will be hard to find people. And hasset on squawk this morning argued a third of the tax cut. A lot more than it has been thatll be a good thing. It may have to because of the labor thats out there i wonder when you get to the market at all. It is a one time the jump up in growth is only one time how much do you want to pay for that it is not like 19 over 18 is another big jump as a result of tax. Thats true you need revenues to come. I do think that listen we had a couple of quarters last week of 3 m technology and caterpillar you have every single cylinder on fire. You will have big revenue. It is so true. New york times, the oil and gas i thought that was surprising column 6, page on times. U. S. Production is on fire i thought that was fantastic that they discovered that. Honestly. It is a big discovery it is a huge discovery. They used to say the late aubrey mcclendon, he was completely hyping it maybe news for some but we have been talking about it for many, many years the number of people put to work is extraordinary. I had suri suky, the number of projects in louisiana to export and number of pipelines and the amount of equipment that it takes to build these things. The southeast is where you want to be. It is where your kids should go if they are looking for a job. Well, theyre not yet dont send them away please my daughters two roommates from tulane, boom, oil and gas theyll take anybody. If you want a job in oil and gas, vp. Remember what happened to north dakota it is really cold the premium sometimes has at 2 or 3 natural gas premium, they just flare it. I think it is an important point when you bring it up when it comes to . New mexico starting to play a bit real world is it you sbot not yet. Schlumberger late cycle well get to apple this morning. Iphone 10 on the spotlight after a rough week for shares, according to nikkei, the company will cut production. It is slower than expected a holiday sale nikkei does not name any sources directly but warns what j. P. Morgan warned last week. I went to Apple Management and say what do you think of super cycle . Please no one can equal super cycle no one at the same time, you want to sell it and knowing they do have a little bit of money, they can distribute shareholders. They are already and are giving a lot of that money. Right to shareholders and in terms of the buy back and dividends and everything else. There is no plan i heard of to return more cash to shareholders from the money they have paid the taxes on even though they deem the repatriation. I agree what you have to do is thread the needle i dont think anybody believes at this point that the next quarter is going to be as good as we thought. The question is are the earnings estimates going to come down enough that it is going to be expensive stuff. Remember that typically happens when you have a stock thats mobile, it turns out, the earnings does not deliver. I dont want to trade it. I dont think the people at home are good enough. I would not be hedge fund. You sell 170 and buying back in 152s, is that what you can get away, can you do that . I cannot do that and you ha have you have been consistent saying and people should not do that it is crock how you got apple to crock, i have no idea i am trying to put in the context of this week this is a big week i am looking at your cuff links today. Oh, i got this at a second store. You are dynamic your wife says go to. 5 not everyon one. You like it my wife said i looked 10 years younger. When the usa bombed german, saturation bombing got it. Okay. Big leaps dr. Pepper up in the premarket, the merge and forming a new Company Called keurig and dr. Pepper terms, theyll hold 13 of the combined company. David is going to bring us the exclusive with the ceos. 11 billion. First some people may say keurig and dr. Pepper, i dont get it well have the opportunity to speak with the ceo listen, we are creating a Larger Consumer from a consumer perspective, we want to be everywhere they want us to be when they want to reach for or get some sort of a beverage thats going to satisfy what ever the urge may be for example, if it is 2 00 and i want something to bring me energy, all right, what are my choices . And what can i bring them . It can be via machine or brew on their own or something they take out of a cold case theyll be sell to the smaller outlets as well using the Delivery System thats in place with dr. Pepper. The whole theme you will hear is consumer perspective coffee is growing. Keurig has been all the growth in that particular part of it. Then there is the financial side of it which some people made it confusing. People are trying to understand what the value of the stub is. The 13 will be owned by dr. Pepper shareholders because of an old deal they did back in the day and they turned that into an ownership in keurig and obviously, jp will own the rest. It is a Public Company the question is, what is it worth . It is trading 30 bucks above the 103. 75 who would not want a piece of that gamgort is so good. I think hes a remarkable executive. There is no doubt and i would guess theyll continue to grow, right . Yes theyre the new one we talk a lot about jp. Panera, that was their last deal but in terms of technology that they brought and share across platform at jab well see. On the face, wait a sencond, i dont quite get it hell explain it to us. I completely get it this is a Consumer Product story that has great growth. Well keep that sign and out of the interview, i think it would be good. It is a little awkward because coke is ringing the opening bell exchange, some new variations of diet coke, here is ginger lime. Some of the metrics on keurig, household penetration going from 17 to 20. Now theyre going to be leveling up. It is going to be lever as much as 4. 5 times and theyll take it down to 3. Again, theyll have a stock if they want to go out and use it for something thats going to allow for them to sell if they choose so overtime right a 1. 27 in 2017 earnings synergize of what the company is trying to do last year put the multiple on that but i dont know what the right multiple is. This is a deal is similar to craft time it is but it is friendly. I will tell you whats amazing of the deal. Larry, the ceo of dr. Pepper hes putting up value year after year hes a remarkable company. Pepsi and cocacola, hes siting there and fighting by the way, hes a soda guy. Hes like a prosoda guy it is a good day to have him here at the exchange although not the right brand. And like warren buffet. He likes soda it is done well for him it is good for your brain, is it is it i dont know. It is good for him they love it. When we come back a fallout from the Sexual Misconduct surrounding steve wynn putting more pressure on the stock. Well talk about that story. S p 500 has 75 for the month and hong kong is up 11 believe it or not. Well be back in a minute oh, and theres the closing bell. sighs i hate missing out missing out after hours. Not anymore, Td Ameritrade lets you trade select securities 24 hours a day, five days a week. Thats amazing. Its a pretty big deal. So i can trade all night long . All night long. Is that Lionel Richie . Lets reopen the market. Mr. Richie, would you ring the 24 5 bell . Sure can, jim. Trade 24 5, only with Td Ameritrade. Theyre not investing in commodities or fixed income. What people areally putting their money into is what they hope to get out of life. But helping them get there requires a real refusal to settle for average. Because when you approach investing with a tireless desire to beat the status quo, Something Wonderful can happen. Those people might just get what they wanted out of life. Or maybe even more. You know whats not awesome . Gigspeed internet. When only certain people can get it. Lets fix that. Lets give this guy gig really . And these kids, and these guys, him, ah. Oh hello. That lady, these houses yes, yes and yes. And dont forget about them. Uh huh, sure. Still yes xfinity delivers gig speed to more homes than anyone. Now you can get it, too. Welcome to the party. Shares of wynn resorts are under pressure again following Sexual Misconduct of steve wynn. Some analysts stuck by the stock on friday, jim some did not this is tough to figure out what it is worth because you know you got an independent investigation but independent for board members. Steve wynn is that Company Stock moved up tremendously. I want to say hes that company. There is few hands on ceos that it is like a Family Business and i just question what do you have here without him i was going over the board, the boards are really real bored it is not just a joke board like what some people are saying. The more real they are, the more likely theyre going to i think this is a you ask question or it is bad. Yeah i do think they are a real company with the best properties when i was looking at the massachusetts Gaming Commission, talk about a heavy weight group. I mean hes got a huge property there. Yeah. Is it the Biggest Development in the history of the state . When you look at the wynn board, it is not bad patricia roy, shes 64 and she serves at the company. You look at her, her pedigree and hes done some stuff with unlv, the World Economic forum just in ages. 71, 72 and 78 wynn is 65. Shes the member of the corporate government senior fella for so you think shes the person to take it on . Shes the one what are you getting to . I dont know. Well, what do you make of some Analysts Barclays i am reading here, they believe the outcome could be a sale of the company. To a chinese buyer. Thats the word. Thats why people are buying it. Steven crosby, the chairman of massachusetts gaming 45 years of experience in policymaking and total heavy weight okay, so a little bit more local and gayle cameron, okay. These are the people in the massachusetts Gaming Commission. Yes these are the people that can hold it up i think they are heavy weights i am looking at these people and they are powerful in the state of massachusetts this is not you may think you went from the board of director to the massachusetts games. One personal internally the mass gaming, theyre not going to say hey, this is great. Lets open it larry mcdowel. This guy is another heavy weight hes very powerful you probably think it is a Gaming Commission from a film that you have seen yes, one that you guys like to reference. It is not,s t well get cramers mad dash o thdavids exclusives with e ceof dr. Pepper and snapples ceof dr. Pepper and snapples on the merger, dont go honking alright alright weve all got places to go weve all got places to go Washington Crossing the delaware turnpike . Awau whats not surprising . How much money sean saved by switching to geico. Big man with a horn. Fifteen minutes could save you fifteen percent or more. Run your business at cloud speed. And do more with systems you have in place. The ibm cloud. The cloud for business. Yours. Okay, here is my man, mr. Cramer on mad dash. You went to the grammys yeah, it was fun. Not that cool i am far from cool but it was a good show. Starbucks, speaking of show, on our fridays show, we have Kevin Johnson who was on, stock was down what do we have today . Today we got, think of the idea that china is accelerating and the u. S. Comp is decelerating so much this is important because they are not willing to give the company the benefit of the doubt because they talk about how they really cannot figure out how u. S. Conference is decelerating. It is a shifting now did they miss the mark on a particular drink theyre kind of given up on it i dont know, it is an expensive stock if they dont get it right. The roast stream may not cover it in terms of the growth. This is a battleground what about china . Well, thats why i suggested that they do a yum china which put on so much value david, this stock it is multiple shrinking it is funny because we are talking about dr. Pepper this cannot be takingen over. Honestly, i dont know what to pay for the darn thing if u. S. Is not picking up and it is still decelerating then you got a mae jurjor part of the co is not doing well. It is real the growth guys dont know what to do with it. Kind of like they dont know what to do with nike so it goes for a while. Well stooart to see if it picks up we got a lot of things to get to this morning. Bruno mars, i like him. We got an opening bell coming up after this and a lot more to get to right here on squawk on the street, stay with us. For your heart. Your joints. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally found in jellyfish, prevagen is now the number one selling brain Health Supplement in drug stores nationwide. Prevagen. The name to remember. The opening bell brought to you by bright house financial, establish by med light you are watching cnbcs squawk on the street. The opening bell in a minutes time busy morning busiest week of earnings well get our jobs number on friday yellens last meeting and we got some data today as well. The savings are down to 24 is the lowest since 05 we consider a light cycle signals. The spending rate is unbeliev unbelievable bank of america says it was twice as it was last year. People feel so good. Pretty impressive lets get to the opening bell. At the nasdaq it is shift [ applause ] beverages are in the news yes beverages are in the news we are waiting for r co consul consolidation. You go down to the isle, stock haves beens have been a yes, interesting. There is also continued as you say continue speculation on a number of names. I think of pinnacle. Thats what people say they tried but it was too expensive. Given the success they had with the deal how well they have done. Whoa, you see dunkin is down 4 yeah. Dps is dr. Pepper is up 32 again, investors try to both understand why this combination makes sense, keurig and dr. Pepper and snapple and understand what the earnings will be for the new code, 13 of which will be a public traded entities so it will be controlled by jab, of course they figure in our conversation, remember they are a large player and a number of areas and panera bread being one of their recent deals that they did. They raise Consumer Fund i report on at the time around, they have gone around two of that theyre able to come up a lot of cash for these deals and 9 billio billion is being used for this in addition delivering keurig in into dr. Orbit creating my company. Apparently on the call, analysts are skeptical. Well, they dont quite get it. Here are the two gentlemen behind it. You mean the structure why the two makes sense together does procter makes sense . I dont know. Some way it does and some way it does not i think this company is uniquely trying to put together many isles of the super markets so trying to make it so they own a lot of your kitchen. Why not . Okay. I think it is fantastic panera was the greatest performance restaurant stock during the period, it is up 2,000 percent. They kind of forced their hands. This is larry young trying to make you richer. He has always tried to make you rich he was on the show on mad money long time ago in 2014 i dont remember how long it was. Hey, we are going to get the stock up and make you a lot of money. We are going to make you money have few ceos have said over and over again, we are going to make you money and he did it. He managed to you make a lot of money thats another reason why it works. I mean here is keurig and look at what is this . Look, you want to dominate a lot of people feel starbucks should have done something an acquisition of something kind of make it so that december tiomestic is not as im. Theyre big in Consumer Products and big in the isles how about mondelez . What about mondelez maybe thats off to something. Tast w ta it is a win for everybody because you are questioning it goldman, advises on the deal. Goldman is the top p performance dow component. We pushed it hard because it was a great quarter given the circumstances. Right final point on this deal. What are you doing . Going back to tax reform, i was trying to think while it went on which is, this is a deal where keurig is not and three or four years ago, no way they would do that. They would have inverted it and taken dr. Pepper and brought it back over. They did not so it is interesting that u. S. Domicile company. Thats all yes remember they got shut by the queens treasury sector. Thats right, jack luke it was a good time to sell allergan, didnt it . Yes, fabulous time. I thought it could go up in earnings sometimes you have to own the fact to get it wrong do you still own it yeah, never did anything. Youre down on it yeah, sometimes when you own something for your trust, you just like wow, it is doing great. No, you cannot do that the gian