Europe relatively soft. Those uk and eu talks continuing. And watch the shortterm move in bonds. Oil, as joe just said, back below 30. Our road map is like this. Apples deadline extended. They have until the 26th of this month to respond to the court. Twitter and facebook both chiming in siding with tim cook as the security debate marches on. Yahoo forms an independent committee of its board as it formalized a process to review the sale of its core business. What is the next move for Marissa Mayers . Deere and nordstrom poised to open lower. First, stocks poised to open lower. S p up more than 2. 8 this week. Consumer prices flat for january, strip out food and energy, theyre up 0. 3. Separately, data shows that 70 of the nearly 175 companies that went public last year are now trading below their ipo prices. Guys, thats thats a rogues gallery of names. Yeah. Michael semblis, a fabulous strategist put out a piece talking about the unicorns. No one wants these companies because so many people have lost money in these companies. Even the good ones. The ones that actually have worked are few and far between and tend to be way off the radar screen. The ones that have worked, if more a moment, like fitbit which reports next week, which i happen to like but have been wrong on, they go up and get clobbered. We kind of say no mas. Please. Dont give us another because we lost too much money. Thats the treatment. Y theme. You tweeted out a long list last week we knew it was bad, i didnt know it was quite that bad. I pointed out the Container Store wasnt on that list. Thats one of the worst ive seen. That cant be contained that Container Store. The down side cant be contained. I did a piece for mad money on ipos. We have certain restrictions, we cant talk about stocks bel s s 2. I couldnt talk about 50 companies. Jim, now theres inflation data. Im keeping a list of things that have beaten expectations. Core producer prices, core consumer prices, the quit rate on jolts, retail sales, Industrial Production beat for the first time in a half year. Industrial production not that high as it was in the beginning of the year. Rent is higher because of not enough building. Clothing is higher. Forget that next month clothing will be down. Medical costs are just intractab intractable. The way that obamacare, the medical costs are too high. Somehow they got to solve that problem. They have not solved it. Yeah. Good luck solving that problem. People have been quite focused on it for a long period of time. Some say we were bending the cost curve when it comes to medical care. That at least i heard Larry Summers say that a number of times, bag key positive. Maybe we stopped bending it. I dont know. United health came out stock okay. United health came out and said listen, were not going to compete. Were not going to make money on these exchanges. Yeah. They need more competition, not less. You talk about people and what costs have gone up most its made up far what oil and gas has gone down. You want to say the economy is running hot. Im going to say that the fed could raise rates to 4 , it wont take healthcare down. They could take it to 7 , it wont take healthcare down. Ivan joked that january is back on the table. Hes funny. What does it mean for the progress of normalization . I come back to what bullard said. Bullard is saying lets change the narrative. Thats James Bullard in st. Louis who had been very much a hawk. Lets not talk about rate hikes. These numbers are variable. Again, rent, can it come down . Not without more building. Clothing can come down big. Oil and gas can come down. Walmart yesterday, food coming down big. So i come back, whats really hot . Minimum wages. Forget it. The fed doesnt control that. Thats hot. And healthcare. The fed doesnt control that. These other things, they will have to go to each of these individual areas that raised wages. That wont happen. No. The tightness of employment is not nearly as much of a factor as the minimum wage is. You can theres people who want to work so badly. Theres shiftswhen you see the shared economy. That says i will do anything for work. But when you see minimum wage, thats to protect workers. And the fact that were actually discussing that after years of not even thinking its a factor is much more a sign of what the real economy is doing than the socalled red hot numbers. A lot of skepticism about this bounce being sustained. What does that mean . At what point do the shorts reset and make another run . If oil and gas, natural gas is terrible, but if oil goes below 25. What happened this was a week where chesapeake got breathing room, or glenn corps got breathing room. Iron ore went up. China did not fall apart. The canadian tar sands are losing money every single day. The utica is so incredible that you cant make money in natural gas. I see marathon dropped down. The only person buying the pipelines is Warren Buffett. Im so glad becky is spending three hours with Warren Buffett. We need a reality check. We mentioned the lack of ipos, but a plethora of offerings from Energy Related companies. Yesterday we spent a lot of time talking about devon. They worked. That was up. It is reminiscent for me of the time when the banks were replenishing their capital coffers after the stress test by issuing equity. Its a bit different here because i think frankly a year ago there was equity issued by the companies, and everybody was sorry. It is an underlying theme were seeing of these companies being ready to continue to battle through this very difficult period as opposed to smaller ones who are going to finally get ipos, oil and gas ipos have been unmitigated disasters. People bought them without a lot of thought. The Oil Companies that we see going down now are kind of still tertiary players, energy 21, for instance. There was a note today, one of my favorite notes, sometimes they are kind of notes that are like jackie mason. Much more jackie mason than jimmy kimmel or fallon. Credit swoo Credit Suisse they go from buy to hold on edison. They go from 19 to 3, David Einhorn liked that stock. Is he from queens . I dont believe he is. Hes not. I would have said more positive things. He is not part of the great group of people who come from queens. Such as carl icahn, or donald trump or jack lew. Ill go on and on. Geez. Paul simon. Really . Yeah. A lot of simons. Yellen is from bay ridge. Really . Yellen from brooklyn. Justice scalia was queens. Wheres neil diamond from and Barbra Streisand . I think brooklyn. There you go. These are companies that people have brought public to take advantage of energy, and theyve killed people. The Master Limited partnerships, maybe they can come back, but holy cow. If this Oil Goes Back to 25, were back in the same soup. Thats not where we want to be. Apples core response to the fbis demand for that encryption breaking technology is due on the 26th instead of the original deadline today. More members of the Tech Community are supporting their fight against that judges order to help unlock the phone of one of the San Bernardino shooters. Late yesterday twitters jack dorsey wrote we stand with tim cook and apple and thank him for his leadership. Facebook says they will continue to fight aggressively against requirements for companies to weaken the security of their systems. Today all three major editorial pages lean apples way. Mostly on the argument that the administration went to legal and political def con 1 too soon. Wouldnt you love to hear what al gore has to say, board member of apple . Whether hes on board with apple. Is he still on the board . Still on the board. One by one you get these Tech Companies coming out and saying it. I think its interesting i remember the debate about whether would have privacy on your cell phone. People said we totally trust our cell phone but on the other side we hate these guys so much. Its a shame that the broadness of what they want is out of sync with what these guys want. I think a one off would have been the way to go here. Private one off. There are yeah. Essentially the journal is saying there must be a way to form a solution. But the technology in this is still cloudy, right . Whats possible . What can they design the chinese. I have a lot of friends, when they go to china, they dont want to use their iphone because they think its been hacked. Thats true. You want to bring an iphone that has never been used in china or an ipad and then wipe it when you get home. If apple were to create a back door or an exploit, as they describe it to get into this phone, it would be taken by the bad guys. Right. Well be revisiting this debate in so many different realms for years to come. Interesting journal story today about the telecommunications companies, how thats changed in terms of what you really want to get. Used to go to at t, 1994 law forced them to open up their network for certain things. Now its not that easy. You cant just tap a phone call. Give me a rico. Remember when they put through rico. I remember studying rico. The racketeering. They said well tap your phone just because we think youre a bad guy. Go to congress. Go to congress, get something done. Dont just make this, listen, fbi versus tim cook. Thats pathetic. Thats increasingly the call. Tim cooks pro Law Enforcement. This has become u. S. Government, will you please, like, realize that stop stop freelancing. If you feel like this, get a law. Pass a law. Patriot act. They did that like that, huh . Congress. They pass laws. They do. They do . Sometimes. Just want to double check on that. Sometimes the president signs them. That happens, im told. I remember that i have a vague recollection of that. I went to congress. A bill on capitol hill, but one day maybe not. Maybe still i could become a law. Thats called a government. When we come back, the latest on yahoo s formation of an independent panel to explore strategic alternatives. Later on, set top box competition. Well talk with commissioner ajit pai who cast up with of the dissenting votes. The premarket, again, for the dow, s p and nasdaq, best week since december 20th. You can fly across welcome town in minutes16, or across the globe in under an hour. Whole communities are living on mars and solar satellites provide earth with unlimited clean power. In less than a century, boeing took the world from seaplanes to space planes, across the universe and beyond. And if you thought that was amazing, you just wait. Lost shipments, international regulations, security breaches, lost revenue lost respect. Well crafted solutions for todays problems in commerce. Pitney bowes, the craftsmen of commerce. Yahoo s forming an independent committee of its board of directors to review and pursue the potential sale of its core business. In many ways formalizing something that the companys already said it would do after it released earnings a few weeks back. We had marissa mayer, the companys ceo, as a guest here on cnbc. Sources tell me the company felt like that message was not fully received by the marketplace. There seems to be growing expectations that there may be another proxy fight mounted against the companys board of directors, perhaps by starboard to try to continue to push them on this process. If you recall, yahoo has said it is pursuing a reverse spin of its core business. Essentially leaving behind its 384 million shares of alibaba in what would you a 40act company, an Investment Company and then they would do what they want with those shares. Its a way to create value overall. Now the board formalized this plan. They have advisers up the wazzu, whether its jpmorgan and goldman sachs, they are advising the people reviewing this process. They have kervathan on the law side. Today yahoo s advisers will be making outbound calls. Thats what weve been weighing for. Thats what verizon has been waiting for. Theyre hoping to shut verizon up already so they can Start Talking to them and stop hearing them yap about how they may want to buy it. Youre making him sound like john ledger. Lowell mcadam two weeks ago on mad money said were ready to make a bid. You did an unbelievable interview with marissa mayer, where she was like, im the ceo. Ill run the company. When it comes to whether i will continue to work at the company, thats up to someone else. People close to the company, advising it, want you to believe that the board and ceo are together about this process. Yes, shes focused on the turnaround of the company, on the potential spin, reverse spin of the core business. But also fully endorses this plan to review it. Other people who i believe also have a good sense of whats going on say that may not be the case. Were in a position where theres a lot of strategics that theyll be calling and potential financial sponsors, private equity firms. Well see where things end up. As i said before, its somewhat complex. You have the significant stake in yahoo japan. No real buyer may want that. They may have to sell that down. Well see how that ends up playing out. Will they want to buy it back. Theyre serious about this process. It wont affect the ultimate return to shareholders as much as if alibaba just goes up. Right. Thats so much more of the value. Yeah. One thing im confused about, shes been closing divisions. I want to look at the book. Why wouldnt i make a decision . Shes running it independent of what you typically would do if youre selling a company. Yeah. Shes running it assuming that the reverse spin is going to be the more likely outcome. Right. But that doesnt preclude somebody from coming in and making a significant bid that this group of advisers, in conjunction of the independent committee and board decides what is value bond what they could get in the Public Market when the reverse spin takes place. Activist role here . Some people wonder what mckinsey was doing this whole time or if this reflects what they have been working on . I think mckinsey has been looking at the inner workings of the company. This is more about can we get a real number . I think its about trying to prevent another proxy fight. And her personal adviser hes not involved in the sale. I dont think a person should have a personal adviser talking about yahoo you dont . No. Thats 3 30 wakeup . Im getting my advisers on the phone, calling them on my cell phone, which is encrypted, and find out what theyre saying about what i should say. Encrypted for now. When we come back, cramers mad dash. One more look at the premarket. Were back in a minute. 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Like in utica, where a new kind of workforce is being trained. And in albany, the nanotechnology capital of the world. Let us help grow your companys tomorrow, today at business. Ny. Gov we are back on squawk on the street this friday. Have about six and a half minutes before we start trading. Apparel sales, oh, wow. I got this is nordstrom after the close. It reported a number, looked good, stock immediately jumped. Then, as i so often tell people, you have to listen to the Conference Call. Conference call was dreadful. Material gross margin miss, down 150 basis points. Guidance, 310 to 335 thats below 353. Most importantly, heres one, you know amazon better than anyone. I whether quote here their copresident. Our expenses have grown faster than sales to support our multi channel growth. Amazon. Amazon is eating everybodys lunch. Holy cow. And dinner, i think. Lunch and dinner. Soon to be breakfast. Yeah. 14 times earnings. David, people are saying if its in the mall, it aint happening. This is devastating for a couple of reasons. One is that nordstrom spent billions online. Billions. And i thought had a successful was viewed as one of the successful strategists. Yeah. Got the website. Then, david, they have this off price thats off price not bad. That remains a good theme. David, youll see youll hear vf corp today. They were dreadful comments. They tried to put on a good face. Apparent, Department Stores, in other words, stay away. Stay away. Stay away. Even for me, david, i was going to shop this weekend. I got to hold off. Im too depressed. Im going to my handheld, my encrypted handheld, i will start doing some serious buying. Unless i got the amazon app. Go ahead. Have you used the walmart app lately . No. A deal on velveeta cheese they had six months ago. Its everlasting. I remember once they had malomars for like a buck. Season or out of season . Like now. Well be back with the opening bell. Live shot this morning of the Supreme Court where the body of Justice Scalia has arrived. It will sit in repose in the great hall of the Supreme Court, private ceremony begins in a couple minutes. At 10 30 the public will actually begin paying their respects, well into the evening. The funeral on sunday. The longest serving justice on the Supreme Court. Of course setting off a whole raft of political questions regarding his wouldbe successor. Finishing off a week thats been good for stocks, then capping it off with some inflation data that ran warm again. You already covered that. The rents. I would point out this was a week where oil stabilized, where china didnt fall apart. Where some of these companies did okay. Oil inventories were bad. Im shocked it stayed here. I still