Up. Well come up with anything wont we . Its outrageous. Im not paying 51. That looks like a little huffington there. Its the other lady. Yeah. She used to go to buffets thing all the time. Oh i know who wrour talking about. Its outrageous. There you go. In the meantime lets tell you about other big stories to watch this morning. The nations auto makers will be reporting january sales. Theyll drive demand for pick ups and suvs in all of this. Also other major companies. And well be hearing this morning and disney and chipotle interactive. One report of note december factory orders will be released at 10 00 a. M. Eastern time. Here are some of todays stocks to watch. The wall street journal reports staples and office depot are in advanced talks to merge. No word on the proposed terms and activist investor starboard called for a deal last month. Utx, i dont know why we need two of them. Tint we lose the other one already . Office max . Whatever happened to office max . Theyre now part of office depot. My life did not change. At all. A pair of scissor is going to cost you a lot of money when this is all over. No you have amazon still. I dont know if you can gouge Office Supplies really. What do you need things to hold paper together for. Its not a paperless society. We looked around our set. Theres paper and staples in there. These are the guests on the show . Yeah. We have all of this information about the guests that are if only you knew ahead of time. Are you kidding me . How do you act like a viewer that its new information if you already know all the information . It seems to be more spontaneous if you dont prepare at all. And natural. Thats why youre so good at your job. Thats why im so good. Utx is increasing its dividend by 9 . That raises to 64 cents from 59. I was going to quickly give you a yield on that. Whats it yielding now . What was it yielding before . Was it a yield stock or not . Yielding 2 . So better than that and shares of rentacenter. I saw this last night. Down 15 . The company posting Quarterly Results. It fell short of estimates while also issuing weak full year guidance and cliffs Natural Resources getting a boost. The mining firms earnings held by a 26 jump in u. S. Iron ore sales. Shares of computer hardware maker stratsys slammed. Cutting its 2014 profit view for a second time also warning the 2015 revenue forecast is going to be short of where wall street was at this point. We should also tell you about other news from a couple of big nshlg names. Fourth Quarter Results fell short of wall streets expectations. Company was dealing with a collapse in kudcrude prices. Bps results were better than expected thanks to downstream results. The company is cutting its Capital Spending by 20 . The ceo sat down with cnbc this morning to talk about the results and the overall oil market. I think its just going to take time. It could be a long time. U. S. Production is still growing. Chinese demand of course has great growth in china. Not as high as it was. We have stock levels filling up all over the world. Tanks are filling up. It wont be long before we see people putting them in ships. That takes a long time to work its way off. Dudley also says the dividend is firmly established as the First Priority within the financial frame work of the company. Australias central bank cutting its cash rate to a low of 2. 25 . Breaking an 18 month break on stimulus. Were going to talk about european markets because they are higher today on news that greece is softening its stance on a debt write down. Michelle is here. So the big headline is greece backs down. The asterik is greece backs down on some things. A lot of Market Participants think its why the dow moved 150 points in the last hour. This news comes as the finance minister was in wow. I like the way you say that. Youre not used to that now . You saying things correctly . If i said that wed need a delay. Sensor. Please look at this video. The markets were focused i wanted you to see what he was wearing because twitter was obsessed with what he was wearing. Guy on the right. The guy on the right. He showed up. One more time. Slow. [ inaudible ] yeah the sensor is be in the headlines at 7 00. Twitter was obsessed with what he was wearing. Little casual. Just like this country, all right. A little aol time warner. That worked out. As hes in london he gives an interview to the ft and he said the big headline is theyre no longer going to demand a full write down of the debt. They wanted it written down by 50 the debt they owed to other countries. Instead hes going to propose a swap where they give the other European Countries a new bond linked to gdp growth in greece. Its something weve talked about on the show before. Thats the one big move that hes made. He still wants the ecb to reprofile the debt that they owe to the ecb. Thats going to be incredibly difficult. Even though this is a concession and we have talked about this before you want bonds linked to growth in greece, that might never happen so it might be the same thing as basically writing this off. Is this palatable . So that would be the second concession that we havent heard much about which is the reforms that they supposedly want to do are not seen as reforms. They want to reinstate Public Workers and rage the minimum wage and salaries and pensions et cetera et cetera. That would be the next thing we have to see them back down on. We havent seen that yet. However, they do have a habit now in the last several days of backing down because this guy we just showed you had been telling people that when it came time in july and august. The Prime Minister of the country came out and said dont worry. Did this over the weekend. Were going to pay back the right. So trying to calm everybody down because their banks were under a lot of pressure. If you look at greeces three year yield which is the best way to look at greece at this point you can see that the number of the yield had gone to 20 due to the big fears we had seen. On a three year. Up from 10 before the election and now today is back down. You can see around to just 18 . I know hes been promising theyll pay back the ecb and the private investors. And the imf. Who gets hosed in that deal. The other European Partners and taxpayers. Other countries that extended bilateral loans to greece during the crisis direct country to country loans thats where they want the write down and thats who would lose. The other european taxpayers. How does that play in germany . So thats going to be a lot easier because for whatever reason they think the populations in europe dont understand if it takes me longer to pay you back with a lower Interest Rate youre losing money. We understand that youre not getting paid back. We understand this intuitivety. Its easier than a 30 year higher Interest Rate or whatever. They dont have to say that there was actual write down. That they forgave dpreess debt. Instead theyre giving them longer to pay it back. Kind of like savers in this country. Thank you. Thank you. That worked well. One thing, remember greek debt is complicated. Theres all different kinds of it. Do we have the wall chart we can show you . The biggest amount they have, nearly 200 billion to their other European Partners. Theyre 24 billion to the imf and then 38 billion to the private sector. The fourth cube in from the right. Thats whenever we show you the chart what is the greek yield is doing it reflects that pile there. That is the only tradeable debt in that big pile. The 38 billion of the private sector four cubes to the right. Thats the only stuff that actually trades. They also reiterated dont worry were going to pay that back. They reiterated that. Still when you look at a yield of 17 on a three year that tells you that people are still worried it could be a possible. They are . What are the chances now . I still think like 20 or 30 . Thats it huh . You could have a banking accident because the ecb could cut them off and then youre at a situation where the greek population has to take out about 100 euros a day and cant transfer any money like a little more than a year ago and then you have to decide are you going to actually buckle to all the demands or print your own money . Were pulling for them to stay in right . Im not pulling one way or another. Its not because i like to watch the world burn its because the euro experiment is just like a joke. I cant imagine it ever works. So many mistakes along the way. We need to hope for a positive outcome for all of us you dont care. And then were not happy they elected a full on socialist in greece. Do you know what the Prime Minister named his son . Ernesto. After a murder. Yeah and really admires the revolution in cuba even though the people in cuba are living worse in what way does he admire . I asked him how on earth can you see what happened to the soviet union and whats happening in cuba and believe in socialism. They say that wasnt real socialism because it wasnt a democracy. You should be happy. Im thrilled. I take that as a compliment. You know. To me thats great company. You dont have an answer for me. We have to move somewhere. We have to go. Nice to see you this morning. Have you got any plane tickets right now . No but we have plans. Visas. You do . Yeah. But at this point you dont i thought i would have to be in greece around february 28th. The way theyre back pedaling in the last couple of days we may not get there. Thats good news for people that are hoping for some calm. Lets check on the markets this morning. The futures are higher. We saw big gains at the end of yesterdays session. The dow traded in 330 point range. Earlier in the day it was down 127 points because of weak numbers from ism. Get help later on by what michelle was talking about. By the end of the day the dow was up almost 200 points and this morning the dow pu tours are up by about 66 points. Nasdaq is up by 16. 5. In europe and the early trade theres also green arrows there. Youll see that in france and in london and in germany the markets all up by better than 1 . The greek market up by about 9 . In asia youll see that things ended higher in china. The nikkei was down by about 1. 25 . Oil prices again a very big story we have been watching. Rebounding above 50. Now trading at 5142. The ten year note looks like it is yielding 1. 717 . Slightly higher yield than yesterday at this time. It looks like the dollar at least at this point is down across the board dollar yen is at 11735 and gold prices at least at this point look like they are up by about 4. 80. 1,281. I wonder if the ten year starts, the yield starts rising. Is it because of the oil linkage . I wonder if all of these things got so extended and that we looked at every day i wonder if you see some other things but i also wonder whether people that made a little money from 46 back to 51, are they covering . It is going back to 70. If you talk to some of the Major Oil Companies theyre planning for oil in the 50 range for years. We can only hope. Stocks looking to build on mondays gains. The major averages all closing up around 1 or more. Investors now starting a countdown to fridays big jobs report. Its always big every month. Continue to keep an eye on crude as we said is back above 50. Here with us to pick up the pace ben pace. Chief Investment Officer and partner at hpn partners and Michelle Myer that does not run yahoo no she doesnt. I still dont. Maybe one day. To make it endlessly confusing, who is that that runs yahoo now. Marissa myer. Youre Michelle Myer. I am. Well you have absolutely nothing to do with her. Maybe i do and i just dont know it. What do you think about the aol deal . Do you think they should merge or what . She is u. S. Economist at bank of america global research. So we have so many things to talk to both of you ben ill start with you. 200 points yesterday. Partly because of greece and partly maybe because of oil. Has the market seen enough sideways action and you can make gains in 2015 . No we have seen over the last three years, we havent seen a full correction. Everybody is waiting for that but weve seen these 4 to 5 pull backs that get cash off the sideline. Maybe were seeing a little bit more than that but we are nervous this year. Theres other issues. Theres geo political issues and earnings slow down that may bring about the 10 correction but we think this is a secular longterm bull market and that should be used more as buying opportunities than anything. You feel the same way . The economy is certainly on a healthier footing to be consistent with greater Revenue Growth and a stronger market. The disconnect is on the growth side the numbers are continuing to come out strong. Around 3 gdp growth. The challenge for the economy is the struggle with disinflationary risks. Thats what the issue is and thats what is probably the bigger theme for the markets is this concern about continued low or even disinflation. I just dont understand why youre saying the 3 is the norm for gdp. Didnt we only have one print above 3 . Last year was 2. 6 when you added it up. Q4 came in at 2. 6 . Were tracking above that. Q3 came in at 5 and q2 came in above 3 as well. First quarter. First quarter was a negative. See that was negative. Because you had a pay back. I think well be around 3 as well. The data thats come in is all kind of adding up to about a 3 economy. Even though we wont see that fuelled by Profit Growth because thats going to be basically is it going to be flat with last year because of the oil sector . Not flat but slightly up were thinking. Do you know what were thinking about earnings . You saw the bad of strong dollar and Lower Oil Prices. The Energy Analysts were quick to increase estimates. The other stuff takes longer. It takes awhile. The analysts there are just waiting for corporate guidance. Corporations are going to have an idea soon of the benefit of that so we think that earnings estimates are going to come down and stay down. Were thinking 122, 123 for the s p 500 which is slightly higher than what this year will probably check in at and that will allow multiples to expand a little bit. The fed must be thinking this and hoping for this with their fingers crossed. Still talk about mid year. Our thought is if they delay it will be september and theyre going to wait for numbers but maybe theyll push that out a little bit. Were still saying officially june. Mid year seems a bit challenging at this point because they have to start signaling to the markets probably by march. You mean its challenging to do it by mid year . I think so. We may go up a quarter but do we want everyone to be ready to go up a quarter. I think in terms of what yellen is communicating and what se thinks about the risk profile its the case that shes in Risk Management mode and she cannot check all the boxes that the economy can handle. That goes back to lloyds point. From a Risk Management perspective thats what the fed should be doing. So maybe its an argument they can understand. He likes lower Interest Rates. Go slow. He also wants a steeper curve. Does he . Yeah. Who doesnt like thats what i was saying. The fed is afraid to say these spoiled brats for six years had all of this free money. All the move in the market with that initial move. When the first rate hike comes it doesnt matter how low or how long. The adjustment is going to take place then. Just like it is unprecedented the pull back is going to be just as unprecedented. You think it will be more. It should be worse on the way back. That sign of tapering a couple of years ago. Look at what happened to rates. They shot up 100 basis points in what seemed like five minutes and you had that tantrum. A really exposed Duration Risk in portfolios and that was a lesson the fed took. But yeah joe i agree weaning ourselves off of this addiction to monetary ease is something that i am looking forward to. But was the lesson that they actually have to do it slow or was the lesson that look at what it is and maybe we should rip the bandaid. No. Maybe theyre going to realize. I think think the lesson is more for portfolio positioning to make sure that you dont have a lot of Duration Risk and portfolios. Your bond positions are fine. You know what your average maturity is. A lot of people ease into equities and theyre the ones that could get hit if you see another bump up in the yield curve. Okay were done do you have a final comment . Im going to pass on that. Pass. It was a good move. Seemed like a good move. The spin off . Yeah why not. Hey, you did it. If you did it yourself. Congratulations to me. Koujous move. All right. Thank you. She died her hair or something. I dont know whats going on. When we come back this morning we have big news today for fans of disneys hit frozen. Plus word this morning that the fec is getting closer to imposing strong rules. A lot of media news when we return but first take a look at this date back in history. I am never getting married. Never. Psssssh. Guaranteed. You picked a beautiful ring. Thank you. Were never having kids. Mmmmmm. Breathe. I love it here. We are never moving to the suburbs. We are never getting one of those. We are never having another kid. Im pregnant. I am never letting go. For all the nevers in life state farm is there. Welcome back to squawk box. Alex wallace joins us from the weather channel. It wasnt too bad alex. I didnt see any black ice or anything. Well, thats really good to hear but we still have to be careful. Theres still some areas where of course anything that was on the ground may be on the frozen side so still have to be careful here through this morning. You can see the temperatures still very cold expected for us today. New yorks 26 degrees. Thats all your manage. The warm spot is going to be down around d. C. Near 40 degrees but even there still below average. Now tomorrow a little bit of a warm up for some of us. Yeah well get up to upper 30s around pittsburgh but look by thursday quickly we see that change in cold air comes in back to the eastern lakes interior northeast and eventually well see that cold air spread toward the east coast for friday. So a little warm up and then things chill right back down and the pot