Transcripts For CNBC Power Lunch 20171218

Welcome everybody scary situation there. The dow the s p and the nasdaq hitting new highs. If we close at another record high today it would be the 70th record close this year breaking the 1995 record for the most closing highs in any year. With the gains the dow is up more than 5,000 points this year that is obviously never happened check out the individual movers. Etf on pace for its best day since december 4th abercrombie leading the way. Best buy trading at an all time home and dr horton and berkshire hathaway, 300,000 a share and now 23 this year topping the s p 500. Wow. Lets get straight to the rally. On the floor of the nyfc. Big enthusiasm. You might have thought the tax bill was priced in but apparently not as he mentioned consumer earnings today are leading. Both benefiting from the tax bill a fairly broad rally the only thing not big is the volume more like Charlie Brown Christmas Tree size. Modest yet still shining bright. Take a look at the all time highs. 58 on the s p 500 and theyre in all sorts of sectors cater pill her today united technologies. Mcdonalds, and then the nasdaq powered by the fang names for so long on pace for its best year since 2013 but its not just tech powering the nasdaq among the highs today you have got their uniform maker jb hunt. The transport and trucking firm. This isnt just a fang play anymore. Back to you. Thank you very much well see you in a bit we have breaking news this hour. President trump Unveiling National Security Strategy that focuses on trade live at the white house with the headlines. Reporter thats right. Just within the past five minutes the white house has posted the full National Security strategy document from the Trump Administration this is the first crack the Trump Administration at crafting one of these remember, president s use these from time to time to lay out their vision of the world and americas rule in it the last one was from president obama back in 2015 he had done one in 2010 as well. So these are sort of periodic documents created by the administrations. This is divided into four parts. The number one element here is defending the homeland, American People and the american way of life but also targeting american prosperity and this is going to be an economics and trade focused document as much as a National Security document advancing american influence and peace through strength the white house says an official telling me this is about those economic elements, everything hes been saying on trade and industrial policy but in a language of a document. An official said National Security strategy will say that china and russia challenge American Power influence and interest attempting to erode American Security and prosperity the president is going to speak in about an hours time and well carry that live. Watch for the language around russia over the weekend we saw very cooperative language between the United States and Russia Vladimir Putin issuing a statement praising the strap Intelligence Agency which he doesnt often like to do for some cooperation on an antiterrorism matter. The president has been favorably disposed toward Vladimir Putin but we expect the language here will be critical of russia watch for how the president balances those two imperatives todays big rally on wall street on optimism about the tax belt which could come to a vote tomorrow elan moye is in d. C. We are hearing the house will probably vote early in the afternoon tomorrow and the senate could start its process right after that business groups are trying to make sure republicans push this over the goal line the u. S. Chamber of commerce issued an open letter eurging pass an and arguing the bill would burden Economic Growth projecting a 1. 7 boost to gdp. Wages would get a 1. 5 bump and adding 339,000 jobs. All this translates into a dynamic cost for the tax plan of 448 billion over the next decade the Tax Foundation typically has pretty sunny forecasts but republicans are touting these numbers preparing for the votes this week. The margin in the senate is smaller because senator john mccain is at home in arizona recuperating and hell miss the votes this week but tweeted he is feeling well and looking forward to returning to work after the holidays there are a few republican senators still not have taken an official position, jeff flake, mike lee, Susan Collins but sounding supportive. So barring any major surprises republicans are probably warming up for their victory lap back over to you. Thank you very much what we know of this year having been a great one for your stock investments. But we want to know how next year is going to look. Tony roth, chief Investment Officer with Wilmington Trust is our guest today. Tony, is the eightyear stock rally coming to an end any time soon great question. Well, were looking at 2018 happening in two parts so the first part of the year probably roughly the first third of the year not much to hold back the market. The market is going to continue to run were expecting probably 10 of organic growth in earnings and another 7 or 8 on top as a result of the tax reform we could see 20 growth to allow for a growth in the equity market without seeing additional multiple expansion the caveat is the bottom market. We have had a rally in equity market we havent seen the buy market budge. We believe next year were going to see the long bond and the year at about 315. The big trade for next year is going to be a rotation probably into nonu. S. Equities as a result of some manifestation of inflation and a long bond starting to move a third to halfway through next year. Jim is, pending some craziness the last week and a half of the year, the stock market will outperform the macro bond market for eight straight years. The last time was 1928 do you think though that the equity rally is going to come to an end, the bond market will eventually maybe next year or 2019 replace equities as a better investment . I think its going to be challenging because one of the things that we have to recognize that both classes have been highly correlated. The bonds have done well and have had positive returns. This positive correlation to positive returns whether its an equity and in bonds could correlate positively to the down side you could get negative returns in equities and fixed income im not calling for that at all. Thats not my point. There is a high correlation and when looking at bonds as a diversification as a class 2 what might be a better growth environment next year might be better for equities next year. If the view is at ten year treasury yields, today at 2. 73 only rise to 3 given the growth and performance that equity markets have put in. Thats not necessarily a negative for the fixed income markets, high yield, merging market markets. You can outcarry that rate rise looking at mid to low Single Digits in a year where equity is doing well, thats not so bad. I dont see it next year as a great rotation necessarily so tony, if what jim is saying is correct and that the bond market yields will probably go to 3 on the outer limit in all of next year, does your biggest concern for the equity markets in the second half of the year, does that get eliminated is the biggest concern that you have that 315 number you have got in your head whats going to drive the 315 number is the key question and we believe that the market has seen just a lack of inflation. Thats really the big mystery to invoke janet yellen that we have seen we believe that inflation is going to start to materialize fairly significantly were not going to break 3 but get into the high 2s next year having a lot of downward pressure. What is the source of the inflation . Because it doesnt seem like its coming out of many places. Wages have rolled over but one thing that has held back has been disruption to the supply chain with both goods and services think of amazon. Digital music. Digital movies airbnb et cetera a lot will start to dissipate going forward. Those effects have occurred. Well start to see given the lack of slack in the employment market, well start to see meaningful wage pressures. Sort of the end of that story. Into next year as we see meaningful wage pressure then we start to see the long bonds move were probably not looking at major losses for bonds next year because the credit environment is very strong but probably looking at a flat market overall for bonds on a precarry basis and a little bit of return from the carry and bonds. In that environment where valuations are attractive outside of the United States and Economic Activity is overdelivering outside of the u. S. Relative to the u. S. Were seeing a rotation out of the u. S. Equities into u. S. We got to leave it there. Thanks for your time the latest on the amtrak derailment in Washington State multiple injuries and fatalities hi sue. Hello everyone. Heres what we know at this hour it was amtrak train number 501 it was on its inaugural route from seattle to portland derailed at 7 40 a. M. Local time jumped the tracks, went over the overpass of i5 striking several cars on the highway. Train cars still hanging over that overpass as well. Multiple injuries and fatalities no number yet. The county sheriff saying none of the fatalities as far as he can tell were from passengers in the cars down below on i5 that were struck by the train cars. The train was packed because this was amtraks celebration of this new route on the cascade line the cause of the derailment is not known. However, the track in that area is new multiple witnesses say they have been working on that track for some time. That is a new overpass and new track. I5 southbound extremely busy is now closed it will be closed for some time. Dow jones is basically saying online information that they have found that is not being b substandatiated by nbc news thats a local picture by our affiliate. It was running 30 minutes late 78 passengers onboard according to to amtrak five crew members onboard. We have reports that a number of people have been transported to the hospital but some numbers are not matching up with other numbers from other news sources. So were going to hold off on how many people have been sent to the hospital. But multiple injuries and fatalities and a still developing story out of olympia, washington back to you. What a tragedy. Thank you. A power outage causing massive travel delays at atlantas airport. Well have the latest. Many of you bought bitcoin and many are thinking about it but havent taken the plunge one cnbc reporter did. We have his experience coming up next you cant predict the market. But through good times and bad. At t. Rowe price. Weve helped our investors stay confident for over 75 years. Call us or your advisor. T. Rowe price. Invest with confidence. Welcome back Bitcoin Trading down about 3 to 3. 5 its trading 18,460. Another major moment the worlds Biggest Exchange getting in on the boom brian, what we have right now are cme traded Bitcoin Futures the difference between the cme that launched last night versus the ones that launched a week ago set the cmes future contracts are larger in sides. One contract equals five bit coins in terms of exposure versus 11 in that ratio the prices are close to each other. Not different by that much were only about 70 bucks apart in terms of total dollar value in difference between the futures. We traded contracts for the cme. Roughly about 4,600 bit coins worth of exposurexposure not heavy compared to other futures markets but something to be aware of with regard to whether or not institutions are more involved in bitcoins future trading, we spoke to the president of campbell and company, what they are is a Commodity Trading adviser. This is an Institutional Investment manager that helps develop trendlike strategies. In order for them to talk about getting to that market they have some concerns that needed a dress addressed. Of course how they feed into the futures prices. Liquidity. Not a lot of trading so far. Maybe it picks up. The extretreme volatility and w the regulatory aspects are going forward. A lot of concerns for the institutions before they start trafficking pretty heavily back over to you. Dom thank you how hard is it to buy bitcoin. Todd decided to make a 200 fractional bet hes here to tell us what he learned First Responder his experience how was it it was very simple. I think thats why its attractive to most consumers saying i want a piece of bitcoin, how do i do it. Download an app call coin base you dont have to buy a whole bitcoin. Cant afford 18,000. Yeah. So i buy 100 worth of bitcoin thats what i did for a weekend. Sat on it. I was writing a story on how to give the gift of bitcoin i said what happened to it on sunday because it trades all weekend and i had come back, back to 200 but i was down to 166 so i lost 44 bucks not too big of an issue. If you walk into a casino, maybe you go in with 200 and you say this is what im willing to lose. What do the transactions cost it depends on how much youre buying i was spending 1. 50 each way. Thats it very cheap. You can buy it on a debit card or you can use a bank account that takes two to three days. Is there a limitation yes you can buy 750 worth of bitcoin on a debit car per week or you can spend more if you link up a bank account or wire transfer. Heres what im curious about. Does owning it change your mentality . Did you find yourself checking the price every five minutes knowing how volatile it could be. I was interested when i pulled it up saturday and saw i was down 66 bucks and i was like i didnt think it was that volatile ive seen the charts and usually its going up. Buy it now because its going to make you money eventually except that only lasts so long. Its a great way for investors to get into this kind of trade or to trade in general i found myself liking using bitcoin and opened up my fidelity accounts and atfs too. If kids are working with their parents and buying bitcoin any interest in the others. The litecoins. The etheoryians. It doubled one day last week. Exactly i think thats also one of the problems with these cryptocurrencies is depending how much other people own and when they want to get out thats going to change on the value in a day or split second it will drop down to 13,000 when we use bitcoin to buy goods or there was a house for sale for 33 bit coins which was roughly 550,000 last week now at 18,000 today that house is a lot more expensive or it could drop down to 16,000 or 13,000 and now the house is worth 420,000 think about that in buying goods like a cup of coffee how much does that fluctuate every day or every week. Probably goes down in price over time. Thank you for sharing your experience thank you. An 11hour blackout at one of the busiest actually the Busiest Airport in the world getting things back to normal in atlanta. Tracking a major market rally. The dow up again dow 25,000 now in sight. Hell we hit it by the end of t year were going to talk about it coming up. So thats the idea. What do you think . Hate to play devils advocate but. I kind of feel like its a game changer. I wouldnt go that far. Are you there . Hes probably on mute. Yeah. Gary wont like it. Why . Because hes gary. phone ringing what . Keep going yeah. laughs voice on phone its not millennial enough. There are a lot of ways to say no. Thank you so much. Thank you so were doing it. Yes we got a yes start saying yes to your companys best ideas. Let us help with money and knowhow, so you can get business done. American express open. 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. It has been a chaotic 24 hours at atlantas hartsfield trying to get back to normal after an 11hour power outage caused a cancellation of hundreds of flights. Phil. Brian, the good news is things are slowly starting to return to normal the people stuck inside the airport will say its going to take longer than maybe 12 or 13 hours for us to feel things are back to normal heres whats going on flights gradually increasing the Ripple Effect will be felt through midweek as airlines get those passengers back on planes. Heres the head of Georgia Power explaining where they are in their investigation into the fire that caused the outage. Equipment fails but our focus and responsibility for this airport to ensure reliability is 100 and it failed and now we have to respond and make sure it doesnt happen again. Theyre hoping to find the exact cause for the fire it was within some of the switches in one of the main power units. As you take a look at shares of delta, it is getting hit hardest because of the cancellations totaling about 29 6 for today and trying to bring more capacity on to get more passengers to their destination or bring them into atlanta the dow transports hitting an all time high. The dow transports continue to march high. Im surprised the hit to delta after last week. It had an investor day, gave guidance the impact of the tax bill would be a buck or 1. 25 to eps next year. Are you asking why im surprised more people didnt take profits now off the back of this incident. I think people are saying they believe delta and a number of the otherairlines can go higher from here i didnt expect people to take profits based on this one incident these are highprofile incidents people look at but at the end of the day they say how much different is this from a major storm in the wintertime which those are all baked into expectations to a certain extent. People might be going why isnt atlanta covering the story on the ground. I think we know why. You didnt feel like driving. I would not have gotten there. Thank you. You bet. The tax bill isnt law and already the wealthy are figuring out how to save their money from the tax money. Plus the Carolina Panthers are for sale and were hearing from an interested buyer. I will be the best nfl owner that you can imagine how mucmoh ney will diddy need to buy the team we have answers when we return at cognizant, were helping todays leading manufacturers make things that think and do automatically. Imagine that, a world of new Digital Products and services all working together for you. Can i borrow the car when its back . Get ready, because were helping leading companies see it and see it throughwith digital. Flexshares etfs are built around the Way Investors think. With objectives like building capital for the future, managing Portfolio Risk and liquidity and generating income. Thats real etf innovation. Flexshares. Built by investors, for investors. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Hello everyone im sue herrera. We begin with the serious amtrak derailment Authorities Say there are fatalities and multiple injuries next with this mornings accident near olympia, washington the live picture from our nbc affiliate. A u. S. Official saying at least six People Killed in that derailment about 40 miles south of seattle there were basically five crew members and 78 passengers onboard in that particular incident you see that car hanging over the overpass but there are three or four more cars that derailed into the woods it is the trains first ever run along a new route which was supposed to be speedier. Investigators are looking into a house fire at least four people were killed including three children ten others were injured, two critically a medical examiner reporting ed lee died of a heart attack the 65yearold collapsed at a supermarket last week near his home he was the citys first Asian American mayor. A lost dog recovering in maryland after getting trapped in an icecovered embankment a group of firefighters rescued the dog. Theyre trying to track down his owner. The dog didnt have a chip implanted or a name tag but maybe when they see this footage theyll contact authorities. Melissa, back to you. We can hope thank you. A check on the markets optimism about a tax vote. Fresh record highs the nasdaq hitting 7,000 for the first time the dow aiming for another milestone. M a monday hershey snack brands for 12 a share. A 70 premium. Pen entertainment is buying rival company. And Campbell Soup buying snacks maker snyders lance. One thing we know about the tax bill, there will be loopholes and wealthy people will hire their accountants. This tax bill is complex. Its quickly written and build around vastly different tax rates for companies and individuals. Its ripe for gaming academic paper written by professionals called games they will play. The bill would allow planning opportunities for well advised taxpayers resulting in unanticipated consequences and costs and everyone else aimed at preventing people shifting income into passthroughs. Law firms can create subsidiaries where the associates are the partners and allow them to deduct 23 of their income as long as they make less than 315,000. And go passive this plan favors passive Business Owners rather than the people who own them and run them so owners can split the companies into business lines and make sure they dont materially participate in any single line. Family companies are going to make sure no Single Family member spends too much time running the company. Stuff the c corp people will generate income in the form of corporate profits and dividends at the Corporate Tax rate fewer restrictions on the forms of income allowed under a c corp than a pass through. About 95 of americas 26 million businesses are structured as passthroughs because the rate is lower than corporations now that equation has flipped and can reshape the entire way that incomes, passthroughs and corporations are treated guys theres not a lot of time to look at all this. Its the full employment act for accountants. For accountants. Which in a bill that was sold and designed to be how many times did we hear youll be able to do your taxes on a postcard its going to put the tax preparers out of business. Trading lower, right . In onepoint font on both sides of the card. His analysis on the loopholes, the breaks and beneficiaries of the final gop plan is senior fellow at the institute on taxation and economic policy. The most complicated simplif simplification of taxes in American History on the left they say its a tax break for the rich on the right, we need this, the middle class will benefit. Your take . This is neither simple nor fair as mr. Frank has said, the new tax break for passthrough income is the biggest single Cottage Industry for tax avoidance strategy that we have seen in a couple of decades. And theres also clearly no question that the benefits of this tax break are going to go primarily to the top 4 . That middle income families will be at best an afterthought. The 1 always benefits because their numbers are so big that even a small tweak produces outsized results if you choose to design a tax plan thats focused on cutting taxes for corporations from the biggest owners who are the top 1 if you choose to focus on passthrough businesses with Something Like twothirds going to the top 1 , then you will get a tax cut for the rich as it happens, however, middle income families pay an awful lot of taxes if the goal was to design a tax bill geared toward them, it could have been done and would have been done in a very different way. There are many other nonwealthy people who exist not in the upper echelons of wealth who will benefit from what you call a loophole, correct, matt . Were focusing on the rich because they probably have the most income that will be taxed, no sure. The middle income families will benefit from one particular provision in the short run the doubling of the standard deduction. Theyre giving and taking away because the expanded standard deduction is off set by the loss of the personal exemption we get per family member. Thats going away. Of course, ten years from now, all the individual tax cuts will go away. Thats an important thing to understand about this bill the Corporate Tax cuts are permanent but every single one of the major individual tax cuts going to families under this bill will be gone at the end of 2025. What about the benefits from 401 k s matt the only thing permanent or lasting on the individual side isnt a tax cut at all its this provision to use a different measure of cpi which will reduce a whole bunch of tax breaks, Everything Else is gone. Do you think that the fact that its not permanent will mean investors will not change their thinking they wont act in the way the bill is designed to make them act because the change is not long enough for them to say lets switch strategies or is even years long enough to do that i would sure hope that the temporary nature of the plan reduces the incentives businesses have to react to them because almost all the incentives businesses could react to as a result of this plan are negative. Its tax planning. Its not new investment. Shifting their business around in a way designed to take advantage of the loopholes yeah, the main effect of having a temporary tax cut with phaseins and phaseouts and special carveout rules is to introduce uncertainty into the tax system not the sort of thing anyone can plan around. 401 k s wont that counter the effects . Thats narrowly true but the other shoe thats going to drop, the longterm implication, best Case Scenario were looking at a 1. 5 trillion tax cut over the next decade. The repercussions for the economy and middle and low income families are going to be felt only when we see the secondary effect on spending we know already from what congressional leaders have said that the next step to dig us out of this hole theyre trying to dig us into is cut in discretionary spending, all the areas of spending that benefit us, middle income families from road infrastructure to health care to education and that will hurt us all in the long run and our children far more than any short term tax cuts we may get. Matt, thank you very much for coming on power lunch and cnbc today. Thank you. One group of people who may be hit by the tax bill, professional athletes. Eric joins us to explain i feel like the smallest violins in the world are playing now. Say goodbye to the Tax Deduction for your agents fee they will not let them claim an itemized deduction for reimbursed business expenses they typically get 3 to 5 of players salaries and 10 to 15 of endorsement deals the big four leagues pay out about 15 billion in salaries per year not counting pro go golfe golfers, tennis players. When players get fined they can deduct those fines as well but not anymore. Maybe that will clean up player behavior this year alone the nfl has dished out over 24 million in fines also tv reporters and anchors we fall into that category. So the violin is playing for us as well. You could have deducted for punching brian in the face. She would probably get a bonus. All right on a different end atopic the Carolina Panthers, Jerry Richardson has owned it and saying he will sell the team because of numerous allegations of Sexual Misconduct and maybe some racial slurs that he had used whats happening thats right. As you said, Carolina Panthers he announced hes going to sell the team after the allegations involving sexual and racial misconduct he said i believe its time to turn the franchise over to new ownership. Hes a former fast food giant and the only active nfl owner who had played in the league back in the 1950s. Hes also been the only owner of the panthers since he founded the Expansion Team in 1993 forbes estimates the panthers are worth 2. 3 billion only 21st in the league but nfl teams dont often become available. The last deal was four years ago for the buffalo bills. This is a big test to see if the cache of being an owner outweighs tv ratings we already saw diddy announce he wants to buy the team. But more serious buyers include three minority shareholders. The belk family of the belk empire the Levine Family who founded Family Dollar and the wordsworth brothers maybe theyll want all of it. Eric, thank you very much. You got it. Every day it seems that stocks are hitting new records heres the question. Is the majority of the American Public getting in on the stock action Steve Leishman has the results of the survey. Steve. These lofty stock market levels appear to have the attention of the public. Our cnbc all america survey, 800 americans finding for the first time 50 of the public thinks now is a good time to invest in stocks you can see this number take off. This percentage take off since the election december of 2016 percentage who believe that now is a bad time down to 29 . And we hadnt hit that since 2008 in the ten years we have been doing this survey who is optimistic . Those with no investments. Those with under 50,000, 61 are optimistic and 71 are those with more stocks a lot of the gains from last year are in the center now a record 53. 5 of the public averaged over 2017 they are stock owners one issue is the tax bill. People who support the pactax bl are more optimistic. 26 of the public favor it 30 oppose pretty high number to gain approval take a look. Youll see 70 of the democrats oppose it and only 56 of republicans. Take a look at the breakdowns. By income group, poor rather than richer are opposed to the bill younger rather than older and professional managers compared to say Blue Collar Workers are minus 9 on the differential. And people just dont think their taxes are going down 35 say in the next couple years their taxes will stay the same and 35 think they will increase 20 think theyll decrease 75 of the public thinks their taxes will decrease. Steve, thank you. Rick is tracking all the action at the cme. You know, two day of twos, we should be pretty much caught up. Kind of running out of gas remember, not every 36 hours we continue to escalate as to the highest levels we have seen going back to 2008 nine years on the 30year bond its been the opposite of course we see the curve has pushed yields down but up four bases points, 30 spread has a good range. Lets look at the Investment Grade lqd atf. It is hovering to the best level since october of 2016. I think that says a lot. And when you consider even with the flattening curve, that fact and along how strong gdp has been and may look, i dont think recession is in the cards, do you . Most of august we did was completely under anything we traded at over the last three years. Back to you. Rick, thank you very much maybe another blow for disneys espn this time. Coming from the very top well explain that story and speaking of disney, the force definitely was with the last jedi this weekend. Well bring you all the hiwod lowing, out of ts Rl Box Office numbers stick around they came out of nowhere, sir how many of em . We dont know. Dozens. All right lets teach these freaks some manners good luck out there, captain thanks but i dont need luck, i have skills. I dont have my keys. on intercom all hands. We are looking for the captains keys again. They are on a silver carabiner. Oh, this is bad. As long as people misplace their keys, you can count on geico saving folks money. Fifteen minutes could save you fifteen percent or more on car insurance. John skipper, president of espn resigning saying he has a substance addiction and needs to take care of himself this is the network struggling of a range of challenges including allegations about the Work Environment for women julia. A shocking resignation of john skipper who joined espn 20 years ago and became president six years ago. He said ive struggled if many years with a substance addiction and the most important thing i can do right now is to take care of my problem. Espn executive chairman who was president of espn for three years before skipper will serve as acting chair for 90 days as he and disney ceo bob iker work to find a successor. The next president will not only oversee the launch of the direct to consumer app but also the integration of foxs regional sportsn network, part of disneys fox acquisition continuing to face the challenge of cord cutting and trimming weighing on disneys shares since iger warned of its impact. Last week espn was accused of hostile treatment towards women by a former employee they conducted a full investigation finding the claims to be without merit. We are confident we will prevail in court espn did cancel its partnership with barstool sports they are top of mind for a range of media executives. Back over to you. Julia, thank you. Star wars last jedi blasting its way to the top of the box office the sequel bringing in more than 220 million is the last jedi success a sign that the box office will strike back joining us is paul, senior analyst. Great to have you with us. Thank you is this specifi analyst, thank you for being with us. We are seeing a lagging box office receipts. We had such a roller costar ride just to put this in perspective through our data, the box office sure to date was down 3. 9 through this weekend with this grate performance of the last je jedi. We knocked it down to the entire percentage point that shows you what a difference one movie could make and this was the third highest grossing weekend ever in north korameric. This is good for the industry. There was a lot of great specialized films in the marketplace. If you are looking at award seasons, this is a great time to be a movie goer, you can see Something Big like tthe last jedi or lady bird or disaster artists or any number of movies thats in that race. Do we go to the movie and it is sold out and we are out of here movie going can create more if you can get more people in theaters, they are exposed to theater marketing and trailers for upcoming nmovies a big movie like this which of course we all know and there is so much competition right now from a small screen. A movie like the last jedi gets people back into the movie going mood when you go to theater, you have the great time and thats powerful so i think it is good for the industry, obviously, having and slightly down from the box office here, north america and globally the box office will be up thats a good place to be heading into 2018. Paul, our thanks to you thank you all right, up in the canext stoll haul on twitter and one former stock analyst says should rally at 30 from here, street talk is next. 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. Looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. Time now for street talk, what you need to know. We kick it up with akamai. The upgrade comes on the hill of eliots management is closing the 6. 5 estate 25 of parts and analysts. In an lbo, akamai could sell for 80 bucks a share your next stock is lyondellebasell. They admit they have been on the site for a while they believe it can come o unroaring u. S. Capacity. They think the drop is shorter lived than before and the world will need things like high cost methodolo me methan methano methanol the third stock here is twitter. One of jp morgans jpm says their products are improving and they expect usual growth to continue and Revenue Growth growing 6 next year. Twitter should be profitable in 2018 well hit the stock coming up next, your final stock is as always smaller cap today is spectrum pharmaceutical coverage with a by rating and a 26 target thats about 25 to 27 upside sales of 125 and 130 million in two years. I do note the company will generate law firms it should drive profitability beginning 2020 sppi is getting an initiation of a buy. Straight ahead, President Trump is set to easpk on trade and National Security. Well take you live when the second hour of power lunch begins right after this. I think that shes a very nice girl. You never got the brakes looked at . Oh yeah. No. At cognizant, were helping todays leading manufacturers make things that think and do automatically. Imagine that, a world of new Digital Products and services all working together for you. Can i borrow the car when its back . Get ready, because were helping leading companies see it and see it throughwith digital. I used to have more hair. I used to have more color. And. I used to have cancer. I beat it. I did. Not alone. I used to have no idea what the American Cancer Society did. Research . Yeah. But also free rides to chemo and free lodging near hospitals. I used to maybe give a little. Then i got so much back. I used to have cancer. Call 18004944357 today. Your contributions to the American Cancer Society fund valuable research. But thats just the beginning. A cancer diagnosis can kick off years of challenge. And thats where your donation truly shines. You help us fund free rides to treatment. A live 24 7 help line, free lodging near treatment centers. And even efforts to expand access to insurance. So, please donate today at cancer. Org and help attack cancer from every angle. The markets change. At t. Rowe price. Our disciplined approach remains. Global markets may be uncertain. But you can feel confident in our investment experience around the world. Call us or your advisor. T. Rowe price. Invest with confidence. Welcome back, here is whats on menu for the second hour of power lunch. The president is set to speak. Mike pence is speaking now how is this for a stat if we get another record of the dow closed today, thatll be a new record well ask how much longer this amazing rally can continue more of the breaking news of tacoma, washington there are multiple fatalities and injuries well get the latest there as well from the derailment welcome to power lunch, i am melissa lee dow and s p 500 and nasdaq is all hitting a record high. Take a look at where the market stands right now dow is higher than 6 10 of a percent. Financial is among the leaders wells fargo leading the charge there and transport by the way hanging all time high, union specif pacific and ups and fedex is among the eaders a big beneficiary of the tax plan under armour and Royal Caribbean is all out performing. Akamai is the leader on the s p 500. For more on whats fuelling this record rally, lets check in with bertha live at the new york tax exchange melissa, one word is taxes. It is optimum, this could help unleash earnings from a lot of these large companies. The dow to the end of the year closed the record and almost one of every four sessions of a little bit more than that. Thats a huge move to the off site not a big on a percentage bases of 5,000 points this year. Not the hugest contributor and apple certainly have been one of the big players. Apple now is just a little bit 10 away the dow is a price way of index and these are the four stocks this year thats contributed to 20 of the game. If you look, theyre really diverse like caterpillar and boeing those are the ones thats helping to the upside here thats the story here, over to kourtney thank you, bertha, i appreciate it. Amtrak train derailing at tacoma, washington our sue herrera has the latest the track obstruction maybe a possible cause of the amtrak derailing. It was going at 21 miles over, that could be the cause as well. Meantime, President Trump is speaking on his America First trade policy lets go live to the president. I want to thank Vice President pence along with the many members of my cabinet here with us today i want to thank all Law Enforcement devoted their life in serving our nation. In particular, i want to regular neuroscience general dunford and chief of staffs, thank you, thank you. In addition, we are honored to be joined by House Majority Kevin Mccarthy Homeland Security, mike mccall, and Senate Majority whip, john cornyn thank you very much, thank you for being here thank you, thank you let me begin by expressing our deepest sympathies and most heartfelt prayers for the victims of the Train Derailment in Washington State. We are close limon ly monitorin situation and coordinating with local authorities. It is all the more reason why we must start immediately fixing the infrastructure of the United States we are here today to discuss matters of vital importance to us all and americas security and prosperity and standing in the world. I want to talk about where we have been and where we are now and finally our strategy for where we are going in the years ahead. Over the past 11th months, i have traveled tens of thousands of miles to visit 13 countries i have met with more than 100 world leaders. I have carried americas message to a grand hall in saudi arabi. And the great General Assembly of the United Nation and on the korea peninsula. Everywhere i travel, it was my highest privilege and greatest honor to represent the American People throughout our history, the American People have always been the true source of american greatness. Our people have promoted and our culture and promoted our values. Americans have fought and sacrifice on the battlefields all over the world we are liberated captive nations and transformed enemies into the best of friends and lifted the entire regions of the planet from poverty to prosperity because of our people, america have been among the greatest forces of justice in the world the American People are generous you are determined and you are brave and strong and you are wise when the American People speak, all of us should listen. And just over one year ago, you spoke loud and and you spoke clear. On november 8th, 2016, you voted to make America Great again. You embrace new leadership and a glorious new hope. Thats why we are here today but, to seize the opportunities of the future, we must first understand the failures of the past for many years, our citizens watched as washington politicians presided over one indictment after another to many of our leaders, so many, who forgot whose voices they were to respect and whos interests they were supposed to defend our leaders in washington negotiated disaster trade deals that brought massive profits to far nations but sent thousands of american factories and millions of american jobs to those other countries. Our leaders engaged in nation building abroad while they fail to build up and replenish our nation at home they under cut and shortchange our men and women in uniform with adequate resources and unstable funding and unclear missions they failed to insist that our wealthy allies paid their fair share for defense. Putting a massive and unfair burden on the u. S. Taxpayers and our great u. S. Military. They neglected a Nuclear Medicine north korea, made a disaster week and in come presen come allowing isis to gain control of vast territory all across the middle east they put American Energy under lock and key and post punishing and regulations and crippling taxes and they surrendered our sovereignties to foreign bureaucrats in far away and over the profound objections of the American People, our politicians left our borders wide open millions of immigrants entered i illegally and millions more were admitted to protect our security and our economy. Leaders in washington imposed on the country and immigration policy that americans never voted for and never asked for it and never approved the policy where the wrong people are allowed into our country and the right people are rejected american citizens as usual have been left to bare the cost and to pick up the tab on top of Everything Else, our leaders drifted from american principles, they lost site of americas decembomesticity dom west west david west the people lost confidence in their future last year all of that began to change the American People rejected the failures of the past on january 20th, 2017, i stood on the steps of the capitol to harold the day, the people became the rulers of their nations again. Now less than one year later, i am proud to report that the entire world has heard the news and seen the signs america is coming back and america is coming back strong, upon my inauguration, i announced that the United States will return to a simple principle. The first duty of our government is to serve its citizens and many of whom have been forgotten. They are not forgotten anymore with every decision and every action, we are now putting America First. We are rebuilding our nation and confidence are standing in the world. We have moved swiftly to confront our challenges and we have confronted them head on we are once again investigating in o investigating investing in defense almost 170 billion. We will develop extraordinary strengths. We are giving our courageous military of our men and women of the support they need and so dearly deserved. We have withdrawn the United States from job killing deals such as the Trans Pacific partnership and the very expensive and unfair Paris Climate Accord on our trip to asia last month, i announced that well no longer tolerate trading abuse we have established strict new vetting procedures and our vetting is getting tougher each month. To counter iran and walk us path our nuclear weapons. I sanction the Islamic Revolution guard i decline to certify the iran deal to Congress Following my trip to the middle east, the gulf states and other nations joining together to fight radical islamic andology we ha the coalition to defeat isis have recaptured almost 100 of the land once held by these terrorists in iraq and in syria. Great job. Really good. Thank you. We have a great military we are chasing them where they flee and well not let them into the United States. In afghanistan, our troops are no longer under mind by artificial time lines and we no longer tell our enemies of our plans. We are beginning to see results on the battlefield and we have made clear to pakistan that while we desire to continue partnership, we must see Decisive Action against terrorist groups operating on their territory. We make massive payments every year to pakistan they have to help. Our efforts to strengthen the Nato Alliance and to set the stage were significant increases in members and contributions with tens of billions of dollars more pouring in because i would not allow Member States to be delinquent in their payments we are made clear that our country is wealthy and should reimburse the United States for the cost of defending them this is a major departure from the past but a fair and necessary one. Ne necessary for our country and our taxpayers and for our own thought process. Our campaign of maximum pressure on the north korean regime has resulted in the toughest ever sanctions. We have united our allies in an unprecedented efforts and however, there is much more work to do. America and its allies will take all necessary steps to achieve a nuclearization and ensuring that this regime cannot threaten the world. This situation should have been taken care long before when i got to office when it was much easier to handle it will be taken care of we have no choice. We have created more than 2 million jobs since the election. Unemployment is at a 17year low. The 85th times since my election we have cut 22 regulations for every one new regulation and the most in the hi industry of our country. We have unlocked americas best Energy Resources as the worlds watches and the world is indeed watching we are days away from passing historic tax cuts for americas families and businesses. It will be the biggest tax cuts and tax reform in the history of our country. We are seeing the respond expected Economic Growth have topped 3 for three quarter in a row gdp growth which is way ahead of schedule under my administration will be one of americas truly greatest weapons optimism has surged and confidence has returned. With this new conferenidence, we bringing back clarity to our thinking we are reasserting these fundamental truths a nation without border is not a nation a nation that does not protect prosperity at home cannot protect its interests abroad a nation that is not prepared to win a war is a nation not capable of preventing a war. A nation that is not proud of its history cannot be confident in its future. And a nation that is not certain of its values cannot summon the will to defend them. Today, grounded in these troops, we are present to the world our new National Security strategy based in my direction, this document has been in development for over a year. It has the endorsement of my entire cabinet our new strategy is based on a new principle realists and guided by our National Interests and rooted in our timeless values this strategy will recognize will we like it or not, we are engaged in a new era of competition. We accept that vigorous political contest are playing out all around the world we face regimes that threatens the United States of our allies. We face terrorist organizations and Trans National and criminal networks and others spreading violent and evil around the globe. We also face rival powers and russia and china seek to challenge americas influence and values we will attempt to build a Great Partnership with those and other countries. But in a manner that always protects our National Interests. As an example yesterday, i received a call from president putin of russia, thanking our country for the intelligence that our cia was able to provide them concerning a major terrorist attack planned in st. Petersburg when many people, perhaps in the thousands could have been killed they were able to apprehend these terrorists before the event with no loss of life and thats a great thing and the way it is supposed to work thats the way it is supposed to work while we seek such opportunities ofcooperations, well stand up for ourselves and our country like we have never stood up before thank you. We know that americans success is not our arrivals are tough, they are tenacious and committed to the longterm but so are we. To succeed, we must integrate every dimension of our national strengths. We must compete with every instrument of our national power. Under the trump of administration, america is gaining wealth and leading to enhance power and faster than anyone thought with six trillion dollars more in the stock market alone since the election with the strategy i am announcing today, we are declaring that america is in the game and america is going to win. Our strategy, thank you. Our strategy for our vital interests. We must protect the American People for the first time ever, american strategy now includes a serious plan to defend our homeland it calls for a construction of a wall on our southern border and ending change migration and horrible visas and lottery programs and closing loopholes that under mind enforcements and strongly supporting our Border Patrol agents, i. C. E officers and Homeland Security personnel. Well develop flnew ways to counter those who use new domains such as cyber and social media to attack our nation or threaten our society the second pillar of our strategy is to promote americans prosperity for the first time American Strategies recognize that Economic Security is National Security it is absolutely necessary for American Power to fully abroad that is why this National Security strategy and emphasizes more than ever before, the critical steps we must take to ensure the prosperity of our nation for a long, long time to come it calls for cutting taxes and rolling back unnecessary regulations. It calls for trade based on the principles of fairness and reciprocity. It calls for firm actions against unfair trade practices and thefts it calls for new steps to protect our National Security. The strategy proposes a complete rebuilding of americas infrastructures and Communication Infrastructure and embraces the future of our self sufficiency. The third pillar is to reserve peace through strengths. We recognize that weakness is the sure past to conflict and the power is the most certain means of defense for this reason, our strategy breaks from the damaging defense sequester. We are going to get rid of that. It calls for a total modernization of military. It calls for eliminating broks bureaucracy and having the benefits of creating millions and millions of jobs this tragedy includes plans to counter threats and shuts down cyber and electro magnetic attacks. It recognizes space as a competitive domain and calls for multi layer missile defense. [ applause ] this strategy out line important steps to address new forms of conflicts such as economic and political aggression and our strategy emphasizes and strengthening alliances to cope for these threats. It recognizes our strengths are magnified by our allies who shared principles and our principles and shoulder their fair share of responsibility for our common security. Fourth and finally, our strategy is to advance americas influence in the world this begins with building up our wealth and power at home america will lead again. We do not seek to impose our way of life on anyone. Well champion the values without apologies. We want strong alliances based on cooperation and reciprocity well make new partnerships with those who share our goals and make common interests into a common cause well not allow in flexible and ideology to become an obsolete and obstacle to peace. Well pursue the vision that we have carried around the world over this past year, a vision of strong sovereign and independent nation that respects their citizens and respect their neighbors. Nations that thrives in commerce and cooperations rooted in their history and branching out. Thats the future we wish for this world thats the future we seek in america. [ applause ] thank you. With this strategy, we are calling for a great reawakening for america. A resurgence of confidence and rebirth of patriotism and prosperity and pride we are returning to the wisdom of our founders. In america, the people govern and the people rule and the people are sovereign what we have built here in america is precious and unique in all of history never before has freedom reigned and the rule of law prevailed and as we have here for nearly 200 years, we must love and defend it and guard it with vigilance and spirit if necessary like so many before us with our very lives and we declare that our will is renewed, our future is regained and our dreams are restored. Every american has a role to play in this grand National Effort today i invite every citizens to take their part in our final mission. Together our task is to strengthen our family. To build up our communities and serve our citizens and to celebrate american greatness as a shining example to the world as long as we are proud and proud of who we are, how we got here and what we are fighting for to reserve, we will not fail if we do all of this, if we rediscover our results and compete and win again, together well lead our children and grandchildren of a nation thats stronger and better and free and prouder and yes, an america thats greater than ever before. God bless you, thank you very much, thank you. That was President Trump laying out his new strategy, one rooted in security and in trade. The president suggested that the previous president failed the care Americans First lets bring in eamon javers with more reporter yes, the president is talking about the theme of trade and prosperity hes critical of his predecessor in terms of the way they handled International Obligation and critical of u. S. Allies including wealthy nations that have not been a i believe to pay for their own military defense saying the United States is going to make sure if they do in fact paying for military defense. This very much was the trumps doctrine laid out of everything you heard of the president of a document format. This president approaching the world doing americas first prism and making the case where you have to focus on growth here at home before you can focus at other goals around the world eamon, thank you very much. Lets bring in Nicholas Burns and meredith sumter. Is Economic Security also National Security . Certainly this president has equated both with the National Security this is the first time that it has been done. It speaks to the way that President Trump has thought about his, what he wants his strategy to be and coming from a campaign trail from which he emphasized the importance of rebuilding americas industry and prosperity at a time where the Global Industry is changing and many feels that their livelihood is perhaps at risk. Meredith, are you taking all of this at face value or are you lining up to put your call in the white house to make sure you understand where you stand with President Trump in the administration for all those core relationships, those core relationships are going. If you are looking at say two of the key relationships that the president was perhaps referring to his remarks, sai would say tt china and russia in the case of the chinese, i would expect that beijing will take these and strive use constructive relationship between xi and President Trump to manage this relationship and move forward mr. Ambassador, the president sounds tough when it comes to security and American Security, does it line up in your view the strong point of the speech were number one the president is saying rightly that russia and china are competitors for global power and he had the rights to say that the power of our economy and at an increasing preing prosperity he did in the say it but in the texts itself of the report, he wants india to help strengthen the american position of all positives. Here is the contradiction that i see and the challenge of President Trump. He has now twelve months in office and his actions really dont relate to this speech at all. Hes given away on trade and Trans Pacific partnership and hes not seen by the europeans as the leader of the west. Hes been so critical of the european allies. He denied the immigrant basis of an American History and the fact that we are all immigrant and hes trying to shut down immigration in a way thatll hurt our economy and hurt the ethos and spirit of the country. The action is a lot more important than this speech and the document and the two dont meet in middle dont you feel in some way that we need to take a tougher tact with the nato ally thats not carrying the load. Germany is paying about 1 and the United States pays 3. 5 and we are over 20 of natos entire budget. Do you feel that trump has a point by saying even to our allies, you need to do your fair share . I was george h. W. Bushs nato i agree that canada should spend more on defense. The president did not mention, the allies raise defend spending and began the rise in 2014 after president putins invadin invading that trend began three years ago. He needs to be a critic and also knee to in courage a lead and he has not done that. It took him five months to say that he adpreegreed on the hear nato and an attack on one is an attack on all. He needs to be a stronger leader than he has been. You say that it could lead to a strategy thats adopted elsewhere in the world other are watching closely to how this president conducts u. S. National Security Policy and economic and trade policies moving forward this i idolize strongly with ambassador burns the u. S. Walking leadership. What does it mean for global trade flows and the ability of countries to continue to realize opening some Trading Investment that the u. S. Is not helping and leeing that push those are all questions of Global Leaders are dealing with right now. Theyre at this moment where they are wondering if the u. S. Is not going to lead internationally, who will . And what does it mean . We are coming out of a meeting of wto where very little if any promises made. The reason was that the u. S. Was not a key player in the room pushing forward for these negotiations Meredith Sumpter and mr. Burns, thank you both thats a record in of itself where does this rally go in 2018 answers right after this lets begin. Yes or no . Do you want the same tools and seamless experience across web and tablet . Do you want 4. 95 commissions for stocks, 0. 50 options contracts . 1. 50 futures contracts . What about a dedicated service team of trading specialists . Did you say yes . Good, then its time for power e trade. The platform, price and service that gives you the edge you need. Looks like we have a couple seconds left. Lets do some card twirling twirling cards e trade. The original place to invest online. Whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley new record highs for the dow and the nasdaq again in the dow closes at a record high today, it would be its 70th, record closed of 2017. Thats the most ever in the y r year all are trading high today materials and albemarle and energy are all pushing a high. Lets bring in our investor strategist, thank you for joining us, so you know that we said it before it takes a lot of credits for whats going on. We have details of the tax plan. Is it priced in or not or why do you think we have more room to run. Look how far we have come . Oh my gosh, just because stocks go up does that the mean we are done. U. S. Economies are among the best in the world. A lot of it has to do of what happened in terms of rebuilding Balance Sheet and earnings have becoming that much more consistent of the last eight or ten years. The issue is nobody has confidence with respect to and the art of investing all when you see so many assets and lead equities of the last 20 years. Etfs or bonds, we are just now after an eight years of rising stock prices, we are starting to feel confidence again. So of what you think of President Trump and what hes trying to do is dealt confidence again with respect to the United States more specifically the art of investing in terms of owning u. S. Stocks again. So there is an art of investing. The markets running up higher and higher, can you put your money anywhere or can you put it in bitcoin, where are you putting your money please dont do Bitcoin Bitcoin is one of those situations where whats happening where the stocks can be good for the stock market if and when we see a correction there and when people stop thinking that they can buy bitcoin and making money that assumes if there is a decision putting money into bitcoin over stocks as opposed to this outside closing ting ca. What we have seen it it had nothing to do with stock market euphor euphoria if we go back to history and look at every major top in the stock market whether it is 2007 or 2008 or the 60s, the Financial Sector had a lot to do with those peaks we are managing our business in an effective manner. We are not levelled up. We dont want to be the first person saying that compliance is going down in financials there what do banks do that are good at it. Paying dividends and buying other banks. That have not started yet. The majority of our investors are we publish our year head piece. Since that time frame, we have seen over 100 clients. People are still nervous and theyre still negative as they ride this thing higher they are riding the stock market higher because they have to be invested where is the money coming from anything only goes up when there are more buyers than sellers and where is all this money coming from how much is left it is a great question. Cash levels have been depleted this year remember Mutual Fund Assets are going down now for a decade. And so thats a major point in terms of their putting money in the traditional money manager. As we are starting to see more and more people working and people investing 401 k and buying etfs. Thats driving the funds up. The market we believe going back to the art of investing, well buy companies again and stick with our favorite names. When the market pulls back and it will. Well add our favorite names in times like this and maybe peel off a little bit and stay invested brian beski. Thank you for joining us twitter is up erov 20 ok, so with the awardwinning geico mobile app, our customers have 24 7 access, digital id cards, they can even pay their bill beep bill has joined the call. Hey bill, were just phone hi guys, bill here. Do we have julia on the line too . k, well well just phone hey sorry. I had you muted. Well yea lets just phone so what i was thinking ok well well phone yeah lets just go ahead phone oh alright the awardwinning geico app. Download it today. When this bell rings. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. Twitter prices is rallying lets get a check on what to expect of global ahead strategies molina, welcome, it is good to see you. Is there a direct commune for any commodity . We think of politics is what causing a optimistic forecast. We are watching closely on trumps statement on iran when he says it wasdeal on january 12th and january 14th, President Trump has to decide once again, whether to waiver those sanctions he said its a bad deal. If he does not extend sanctions waivers on iran, those sanctions are coming back. I dont think thats something the oil market valely absorbing now as we could get into a much more confrontational u. S. iran situation next year. What could that mean for oil prices, what sort of risk premium goes in . I think its very important to watch is the Trump Administration serious when it calls iran a rogue regime . If we bring back those sanctions and start telling importing countries to cut your iran imports, that could be significant in tightening the market im also very concerned about saudi arabia saudi arabias talked very, very aggressively about wanting to contain iran they basically said the iranians are responsible for missiles that have been launched from yemen into saudi arabia. If we get some type of intensification of the iran saudi power struggle, thats another catalyst to move beyond a cautiously optimistic view for oil prices next year. We still have, like, a purge going on in saudi arabia as well, whatever you want to call it people are still being held prisoner, albeit tt a hotel. Im shocked that oil prices havent responded more to what is happening at the highest echelons of power in saudi arabia are you . I mean, im concerned, again, about the regional context this is taking place in i think domestically, bin salman seemingly has the situation under control for you. If there soeems to be a type of pushback, if the military isnt going to go along with it, spence sens of instability in saudi arabia, prices would have moved higher people think he has it under control. I would argue the regional picture is more dangerous going into 2018. How about shale production here and how that plays into the broader global market. Again, why were not raging bull on oil given the geopolitical backdrop is u. S. Tr production is going to come back next year. The question is will the u. S. Production climbing by potentially over 900,000 barrels next year be offset by some big geopolitical story so we are, again, watching u. S. Production on the flip side, were also watching what happens in venezuela venezuelas a place where we think production could fall fastest. They are facing such a severe economic crisis next year. Its hard to see them being able to remain current levels we think venezuelan production could be dropping by 500,000 barrels next year. Could see really significant wouldnt increased demand absorb that . This is the interesting question demand we expect demand to be quite strong next year it can absorb the u. S. , if he start to lose venezuelan barrels, that market will tighten. Ultimately, whats your goal for crude oil . Eti, we have it averaging 58 averaging 62 for present. Helena, thank you. Thank you for having me. Rbc. Its time for trading nation. Why not . Lets trade twitter. Jp morgan upgrading the stock. Call it one of its best ideas for next year. 27 target on it rich ross, evercore isi. Kevin with Washington Crossing advisers rich, two ways to look at it, upgrade, polp, stocks been hot this year. Below its ipo price and well off its highs. How does twitters chart look . I would not buy it here bring up the chart ill show you why. Ill also show you where and how i would buy it when we look at a daily chart, going to look at a twoyear chart first. See for the last two years the stock has done absolutely fog. Youre back up into this critical resistance up and around 25 where we failed last year at this point, and we shaved off about 50 of value. So, theres that more importantly, zoom out, brian, you can look at that multiyear weekly chart and see were up against a fouryear down trend in the stock. Now importantly, on the bright side, you can see a multiyear base of support with that Double Bottom in place. If you took out the multiyear downtrend and neckline of the Double Bottom base around the big figure at 25, the stock sets up as a trading buy im not buying it here into resistance im going to wait for the break, buy it on a breakout not right here, intraresistance. Waiting, waiting, waiting. Kevin, youre not a single stock guy. You invest in themes are you a buyer of technology or seller or holder weve moved to neutral on the group, essentially its had such a tremendous run, and a lot of it has been justified by earnings underneath it where the Earnings Growth rate has been double that of the s p 500 recently long term, still very bullish on technology, but we have to be honest about this, tech is a sentiment play and weve seen strong sentiment lately its hard to imagine that extrapolating out forever so we have to be a little bit careful here thats why were neutral on the group. Okay. Neutral on the group rich ross, waiting guys, thank you very much. For more trading nation, go to our website, tradingnation. Cnbc. Com check plooezease is next. Now the latest from tradin tradingnation. Cnbc. Com position size and risk reward ratio are two important aspects of building a winning trade. You dont want a single position to be too big a percentage of your tradeable assets. Additionally, you want to make sure theres enough profit potential to justify the risk youre taking. Consistently constructing suitable trades and adhering to urxipl can help you build on trading successes feel that . Thats the beat of global markets, the rhythm of the world. But to us, its the pace of tomorrow. With ingenuity, technologies, and markets expertise we create the possible. And when you do that, you dont chase the pace of tomorrow. You set it. Nasdaq. Rewrite tomorrow. Bitkoin craze is on. Longfin. It ipod on the nasdaq on december 13th. Two days later it buys a Blockchain Company called ziddu. Com. Since then, its up 1,000 yes, 1,000 . Were going to have the ceo on fast money tonight this is an interesting story there are a lot of companies out there trying to put that blockchain name onto their company and see huge increases in market cap. Well see if this is really a Blockchain Company. Im watching retail, no surprise, but, hey, we are really, really close to christmas. Look at the xrt. Thats that retail etf its up about 2 , tracking its best day since earlier this month because retail has actually been on a pretty nice run. Now its up more than 2. 5 if you look at some of the components, some of the names a lot of folks thought might have been left for dead macys shares up 27 a month kohls up 22 month in a month elle brands, winner from black friday, according tune lists, up 20 in a month we have to see how things shake out. Overall the numbers were seeing from transaction data from mastercard suggest sales are up 3. 6 through about the midpoint of the season. So well see the market was valuing many of these stocks as 0 on their underlying business. Their price to sales ratio was 0. 1. Versus a 2. 0 for the s p mine, well combine both of those. While i was out shopping this weekend, encountered a lot of power lunch fans every Single Person to a man, to a woman, wanted to talk about what else, Bitcoin Blockchain at the Christmas Party saturday night i was at bitcoin. Not an indicator of anything i hereby think cnbc, rebabrandn consumer news blockchain channel. Maybe our market cap will go up thats not too bad remember, markets at a fresh market high. Nasdaq dropping 7,000 for the first time thanks s so much for watching power lunch. Thanks, courtney thanks for having me. Closing bell begins right now. Hi, everybody, welcome to the closing bell, im kelly evans. Were back over here now. Yeah, i know. I love what theyve done to the place here its all different than it used to be. Were here at the new york stock exchange. Im Bill Griffeth a week from today, just a friendly reminder, is christmas day. Which i only realized last weekend, actually, wait a minute, everyones coming on friday, i havent dont anything i cant get gifts after they come. I finished my shopping over the weekend. But now i have to do all that wrapping i know. Do you do it from your couch pretty much yeah. You bet. How else would you