Hour the major averages have been Holding Steady on light trading. It is a holiday shortened week the dow transport setting another record high. Oil moving big crude and brent crude. Apple shares taking a hit down more than 2 thats the biggest drag on the dow. Reports of iphone x sales are slowing. Mallinckrodt up. Intel down intel will lose the crown as the number one chip maker for the first time in 21 years to samsung. Amazon saying it had its biggest season ever. The echo dot the top selling product across the categories and many factors we begin with retail the day after christmas is one of the biggest for returns. Kate rodgers checking out all the deals in west nyack, new york reporter retailers definitely have something to cheer about. New data out from master card showing that retail sales from november 1 gs through Christmas Eve were up 5 that is the fastest pace since 2011 ecommerce grew by around 18 overall the National RetailFederation Said sales are set to be around 682 billion on the high end ecommerce adobe says making up 100 billion the mall opened here at about 8 00 a. M we were talking to shoppers. A lot of them eager to take advantage of deals bloomingdales, target about 70 off on thousands of items. Best buys discounting some computers by around 150 amazon has a ton of deals online as well. Also to christmas of course fell on a monday this year so shoppers had an extra saturday called Super Saturday this past weekend. We dont quite know how it faired today the day after christmas set to be the fourth busiest of the season as you mentioned, not only are there great deals but a lot of people are coming in to return items. On average around 4 of the gifts people get are returned. Millennials return a bit more. Traffic looks pretty good there, kate. Has it been like that all day . Reporter no. Weve been here since before the mall opened. The doors opened at 8 00 a. M im not sure if people realized that the mall opened so early the day after christmas at 8 00 a. M. Since 10 00 or so many people are coming in. A lot of people are here for the deals. They want to buy the discounted christmas decorations, holiday items. I love it thats early that is early. Thats very early. Lets get my mug off the screen lets go to that wide shot key fancy tv term because no ones got a bag. Everybody is walking by, nobody has a shopping bag get me off the air show the mall. Turn around. No ones shopping. Reporter one. Who is that from . Reporter we saw some people brian, when we see people with bags, the bags are really jam packed. They got a ton of deals and things that were on sale i think people come in to return items, a few people had gift cards they were looking to go spend. Thats the big thing after christmas. Also like eight degrees outside so do something else, right . Reporter very cold thats right. Kate, thank you millions of packages are being shipped. All of them needing to be there by Christmas Morgan brennan is looking at how the big shipping company did and how theyre gearing up for the post holiday season. More like billions with the u. P. S. And fedex starting to get data it looks really strong despite warning on saturday that wind sheer had caused disruption in memphis, the company imagined to deliver 98. 4 of the express packages on the week that ends on the 3rd some deliveries did go out on the 24th, they delivered 99. 9 of packages on time. As for ups, after handling record volume, 96. 4 of the express packs cages got in there. 99. 3 with Christmas Eve. Ups did repurpose several hundred office staff with less lead time this year for those workers and that brings us to the other big take away record volumes, Strong Service but amid a tight labor market. Ups and fed ex were looking to hire a combined 145,000 Seasonal Workers this holiday season. It was tough finding folks which brings us to costs this year both added surcharges to oversized packages. In the case you had some charges to the ground and air shipment it begs the question, will this be the year that both of these Companies Get it right, not just for consumers but for investors. Retail is having a very merry christmas. Xrt up by 7 master card rose by 4. 9 which Retail Stocks will be the biggest winners and losers joining us is Barbara Miller at federated. Great to have you with us. I know youre in the business of stock making weve seen quite a bounce back like macys, nordstrom, et cetera, are we to believe the worst is behind as the Consumer Confidence is at 17 year high and unemployment at 17 year lows some of the results got less worse. Another is that the pending change in taxes is positive for a lot of domestic retailers that pay a full tax break so the stocks had adjusted to some gree to account for that and generally trends seem to be positive on the retail front i do believe that as we get into 2018 we will continue to hear about the secular changes that have dramatically affected brick and mortar retailers that being the shift to online purchasing and mobile purchasing the juggernaut thats amazon that has really created a lot of change at some of the existing retailers but, you know, nobody gets 100 market share in retailing. It takes a long time for a retailer to die. So there is hope out there for companies that have a very clear accepts of who their customer is and are focused on improving their omni cable lets get to some of your picks, barbara you highlight the loyalty program. How amazonable or unamazonable is this business if amazon said they were going to launch a beauty line, is that a problem . A lot of what ulta says is on amazon its what they sell and how they sell it makes a difference ulta has 26 million or so ultimate reward customers and that gives the company a lot of data ulta has authority in the cosmetic space going into the store is important for the beauty enthusiast who makes up the core of their Customer Base she likes to try the product she likes to look at newness and she likes to understandwhats going on in the space. Shes influenced online by beauty enthusiasts promoting products shes able to find that at ulta. There is cosmetic presence on amazon some of those like he este laud is careful. Fnd, they like the whole notion that this is like lowes or home depot that will benefit whether new home sales are strong and they stay put and they remodel floor decor is a great growth story. 85 stores, this is a company that can go to more than 400 growth double digit same store sales. They take market share three ways they take it from the home centers due to price and selection, they take it from independents who are much higher in price and cannot offer the same experience in selection that floor decore can. They create decore 70,000 square feet you can see all sorts of ways to use hard flooring, tile, wood, other types of materials nice. So we see a lot of opportunity for this company ahead. Barbara, thanks for your time, good to see you. Thank you. Unless you were completely invested in ge or maybe a couple of other stocks, were guessing that 2017 was a pretty good year for you and your money major averages all up double digits it was running for the beps five years. Brad mcmillon and karen cavanaugh, Senior Market strategist its the day after christmas the tax bill is in the Rearview Mirror so the biggest driver of the stock market in 2018 will be what the changing Consumer Confidence. In a good way or bad way . Well, Consumer Confidence as just was mentioned is at a 17 year high. Even if it goes back to 2,000 levels, that only buys us a year or most. We see it will peek. It sounds like you might be. I think it will be a rollover year well see some appreciation. Do you think well end next year lower than where we begin the year im calling it flat 2700 for the sau p were going to see continued Earnings Growth but the multiples are likely to roll over. Karen, do the same game the main driver for bus will be what business spending sther unleashing Economic Growth and we are going to see a real change in how the economy is growing, its going to grow a lot faster its been relying on the consumer for the last eight years. Now its capital investment, business spending. That will change the whole way the economy is moving. Its going to accelerate it. We havent seen that and that is going to change productivity, increasing productivity and i didnt think that was the big difference in 2018. Karen, do you think business spending and capital expenditures, is that going to create jobs . Yes, it already has weve seen in the Third Quarter of 2017 and what we will see in the Fourth Quarter is that we are seeing companies are investing more in their employees, investing more in training and creating new and better jobs. Thats what i wanted to get at, brad, in terms of your thesis for next year in Consumer Confidence we are going to see the multiplier that isnt put into many economists model business spending, capital ex n expenditur expenditures companies are willing to raise minimum wage im not going to include the bonuses you have as onetime Things Companies are willing to raise minimum wage for their work force which is a real commitment to the neutral cut. I think it can go up for another year i dont necessarily think were going to see it peek right now. Will it be flat even if it continues to go for another year lets look at what youre talking about. Lets look at job growth were looking at people to hire. The rate of job growth, its starting to sell at this point in the cycle the wage growth weve been saying is anemic and it will come back in years it probably will but no good news. One haas response weve been missing productivi productivity when we see that we are going to see the productivity return. Its not just the u. S. , not the only one thats doing well the big three, china, europe all moving in tandem growing with Consumer Confidence. I like it, ace, call it ace, melissa, america, china, europe. Karen and brad, you can feel free to use it appreciate it. Twoyear notes up for auction. Lets go to the always ace Rick Santelli at the cme. This is not a great week for auctions historically and todays first round of 88 billion with 26 billion in supply, i gave it a d. The yield with an option of 1. 922. The bid side was 1. 92. So higher yield, lower price heres where it goes wrong 2. 52, a little over 2 1 2 subscribed to since december of 16. 40 indirect 11 below 10 option average. Since december of 16. The only metric even near was 14. 5 direct, 45. 5 a big amount to primary dealers i dont particularly think the 5s and 7s are going much better. That auction we just had had the highest yields of the dutch auction, you guessed it, september of 08 the same time you see its popping to melissa lee, back to you. Quite a comparison. Thank you. Rick santelli in chicago tax reform was the big story of 2017 the big story now is who wins, who loses. That story is next. Apple following today we saw you drink water. You think its water. On camera rorepts supporting the iphone x shares we have that story. You didnt squawk very thirsty. Youve got pred. But with more exercise and a change in diet, it can be reversed. But ive tried exercising, and it just makes me hungry for bacon. I love bacon, too. And who really likes to exercise . Not me. Me neither. Nobody [both laughing] mmm so were good . What . Oh, you still have prediabetes. Big time. 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. Ive asked chase sapphire reserve cardmembers to find my next vacation. Uganda, what are you up to . Thats a real silverback gorilla. Im freaking out 3x points on travel and restaurants. Sapphire reserve, from chase. Make more of whats yours. As we wrap up the year, one of the biggest things still on peoples minds is tax reform with a huge number of changes set to go into effect in a few days, how can most businesses and industries expect to be impacted joining us is ken smetters, professor at u penn wharton. Here is the trillion dollar question on the right they say lower effective Corporate Tax rates will boost the economy and create jobs. On the left i need more water. On the left they say, no, it wont, it will make people buy back stocks and go into the shareholders pockets. Whos right . Basically when it comes to the Economic Growth at the penn wharton budget model where we do the analysis, we certainly do find some increase in Economic Growth but its about oneseventh of the growth thats required so we are going to see some Economic Growth. Maybe. 1 at the high end. It will be much less than what the white house was hoping for simply because a tax bill design is not as nearly pro growth. Youve done extensive work on the corporate side and the individual side. Let me ask the same question a bit of a different way when entities, whether or not its a rich household or Corporation Get more cash into their pocket, do they then spend that money in a way that lifts all boats . Some people call that trickle down economics i know it has a politically charged term do they spend it yeah. I mean, certainly they do. What you really see is that companies, some of it is going to be given away in terms of higher dividends of buy backs from shareholders. A lot of it will be in the form of higher Economic Growth, in the form of higher wages in terms of more jobs its not going to be nearly as large as the white house was certainly hoping again, its going to be some positive Economic Growth in terms of what the Companies Choose to spend it on, there will be a more powerful dollar spent, kent, if, for instance, they take the tax savings and they buy back stock versus, you know, some of these capital intensive companies. They actually make the investments and is that a greater impact dollar in this scenario yeah. You have a couple of things coming happening at the same time the dollar certainly will grow simply because there is forced repatriation under the tax bill. So a lot of money certainly will be coming back from over seas that is currently held overseas. The second is the fact that when companies have more money, especially the capital intensive ones, they are going to take advantage of some of the quicker expensing that is the quicker depreciation that will happen during the first five years of that bill. I guess what im asking, ken, excuse me if i wasnt being very clear about my initial question, if a company took whatever amount of dollars and bought back stock versus use it for capital expenditures, is there a greater Multiplier Effect in terms of that growth estimate that can be gained from tax reform if the company spends it on cap ex . For the most part the greatest part is coming from increased investment if, in fact, the Company Takes the tax savings and they invest it in more capital, that certainly is going to be a much bigger multiplier than if we increase consumption today. So that would be much greater than that. 1 that you were talking about . No. That includes the the. 1 is inclusive in all of those. Why do you think most people dont acknowledge youre getting a tax cut . I understand there are issues in the blue states with the removal of the salt and all of that. But we forget that every top line tax rate is dropping by 2 and the income levels are going up. Right. Why do you think that has been such a difficult sell yeah, i think its both sides, the left and the right have been successful in some of the Marketing Campaigns and that is those on the right have been successful in overstating the Economic Growth. Those on the left have been over stating the distributional impact of this in particular on the distributional side its much more neutral than what those on the left have said about it being the give away for the rich and things like that most people will in fact over 90 of people will probably get a tax reduction, however, keep in mind this is a deficit finance tax bill so the real payers here are going to be those in the future. Your kids, your grandkids who are going to be inheriting a much bigger debt as a result of this well leave it on that high note ken smetters, thank you very much shares of apple falling today on reports of disappointing iphone x sales thats hurting the dow and the suppliers. Plus, oil is moving higher getting to a 2 1 2 year high in fact whats behind todays big move we have that next on power lunch. Mary had a little lamb whose fleece was white as snow. But after an electrical fire from faulty wiring, marys vintage clothing and designer shoe collection were ruined. Luckily, the Geico Insurance agency had recently helped mary with renters insurance, and she got a totally fab replacement wardrobe at bloomingdales. Mary was inspired to start her own fashion line, exclusively for little lambs. Visit geico. Com and see how affordable renters insurance can be. When it comes to travel, i sweat vthe details. Om late checkout. Downalternative pillows. And of course, price. Tripadvisor helps you book a. Hotel without breaking a sweat. Because we now instantly. Search over 200 booking sites. To find you the lowest price. On the hotel you want. Dont sweat your booking. Tripadvisor. The latest reviews. The lowest prices. Your top money story new headlines out of libya the very latest trade ahead. Bitcoin bouncing back. Well tell you what to do if you got the gift of bitcoin ahead. 2017, a great year for ocks well show you how the wealthy are getting ready for next year. A lot more to do power lunch will be right back preshaken sodas. Like having their seat kicked on an airplane. Being rammed by a shopping cart. Sitting in gum. And walking into a glass door. But for everyone else, theres directv. For 1 rated Customer Satisfaction over cable, switch to directv and for a limited time get a 100 reward card. Call 1800directv. You myour joints. Thing for your heart. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally found in jellyfish, prevagen is now the number one selling brain Health Supplement in drug stores nationwide. Prevagen. The name to remember. Im landon dowdy heres your cnbc news update for this hour. The u. S. Has sanctioned two north korean officials known for their involvement behind kim jonguns missile development. Meantime, russia says its former minister Sergei Lavrov spoke with Rex Tillerson and said washingtons aggressive rhetoric of north korea is unacceptable theyve filed a lawsuit over the broken gun background check system this after the air force said it failed to report the criminal record of the gunman in last months Deadly Church sheeting in texas we finish with a look of time lapse video of steam coming off of Lake Michigan 35 degree lake water created the effect the wind chill was 31 below zero thats cnbc news update for this hour back over to you. Wow that is cold but very cool landon dowdy, thank you very much. Nice. Stocks are Holding Steady right now. Oil becoming your top money story. It is on the move. Crude oil prices here and brent crude prices overseas. Both jumping to the highest levels in part because of a pipeline blast taking out 90,000 barrels a day. The biggest question is where do prices go from now joining us is Roberto Friedlander. Its not a normal working day for you, buddy it cant be 90,000 barrels a day thats taking oil up like this, can it hey, brian. My pleasure to be here. No, its not just that i think we came in this morning. We saw china november trade data was up big china had a big amount of crude and lng of crude up 39 . Lng orders up 60 . Overlay that with the pipeline explosion in libya we have this polar vortex in the east coast of the u. S. And thinner holiday trading. It speaks of a real short squeeze here that were seeing this morning. So do you believe that longer term, roberto, the opec Production Cut is working or are all the things you just mentioned transitory and oil prices will probably go back down in a few months thats two great points for the opec compliance, i think that it certainly is working i think theres a couple of points that you have to keep in mind the rig count, we saw two straight weeks last friday picked up so we have activity around 747 slowing down rigs there. And theres a 20month lag time in terms of production so second half of 18 we can certainly see production ramp up significantly from the u. S. Shale machine. In addition we have Something Like 7300 drilled uncompleted wells. So theres a lot of inventory which can cap pricing there. That being said, technically we have february wti breaking out of the space here. Call it 54. 30 to 56. 20 the next up side is 63. 30ish a lot of players that i speak to wall street has a shortterm memory. I was going to say, roberto thats an important point youre making the giant jump in rig counts we saw this year, we added about 300. It came down a little bit at the end of the year. Yes. That production, we probably wont even necessarily see many of the numbers until the middle or back half of next year, correct . Thats correct. Thats correct i think one of the items that weve been talking about with clients is that the u. S. Shale machine is going to blow north of 10 Million Barrels a day. Theres a lot of production that comes online whether you look at it with those rigs coming on and drilling the big ducs in inventory which can get turned on in a second. The big saudi aramco, it could be like all bets are off and the saudis go back to looking for market share thats a wonderful dynamic to have. Great points. Joining us by phone. Happy new year. Thanks much. So as we said, the overall market, the stock markets not doing a whole lot. The Dow Jones Industrial average is down 25 points. Bob pa ssani is at the New York Stock Exchange it is a change on a calendar well, yeah and no i mean, if you look at today, you had a great segment with Roberto Friedlander there. The volume is light and trading range is narrow. Sectors are breaking out now we have a whole bunch of them, phillips 66, eog, chevron is at chevron is at a 52week high, i dont have it up here. Were close to 60 this is the holy grail a lot of analysts have this. These are quite significant moves were seeing retail, weve told you how extraordinary it is. Retailers dont move up in december they dont go down 30 in a year like weve had look at the moves, all new highs. Herman miller. A lot of middle level, midcap retailers are at new highs lowes is up at a new high home depot is at a new high. Mentioned that as well we have a small group of industrials. Some of the transports union pacific. Chw, ch robinson dover, united rentals. These are all solid numbers. Finally want to note the bit couldnt as you can see you go from 10,000 to the start and then back to 20,000 and now back to 10,000 and back up to 15,000 volumes on the light side. Given what happened last week, perhaps understandable. Bob pisani at the nyse. If you got bit coin for christmas, heres what you need to know. Weve seen several hacks in 2017 and thats why its so important to protect your crypto currency heres what theyre recommending to do. First, write down your private key. Some people like to have a third party store their keys another option is to get a hardware wallet like ledger or treser they store your encrypte private hotline. If you want to add bitcoin it requires multiple private keys keep in mind, watch out for the fees if you plan to convert it, expect to incur a charge you can transfer your bitcoin to a debit card again, watch out for those fees. The zappos covers a fee and it depends where bitcoin is trading at the moment. Also, privacy. If thats important to you, bitcoin many times is marketed as a currency that lives virtually therefore harder to track. Once you earn by the coin, either is attached not as anonymous. Lucky enough. Exactly thank you. Shares of apple falling today on reports that the iphone x didnt sell as well as expected over the holidays josh lip ton is in San Francisco with more on this report which is a little bit i mean, they dont really cite any specific sources. Yeah, so thats right, melissa. Certainly a lump of coal in apples stocking they woke up this morning. New questions being raised about the companys popular iphone x there are reports that apple will slash the number. Apple hasnt disclosed Quarterly Sales targets for the ten which went on sale back in early november apple suppliers also under pressure check out qorvo and finis. Theyre downgrading that stock to a neutral the 10 is counting on it to digs play facial recognition. 999 price tag to give a lift to iphone shipments in 2018 street expects them to be of about 270 million. Apple declining the reports. At least some dog they believe iphone x was stable and enjoyed an acceleration over the last two weeks back to you. Josh lipton. Certainly the tax bill getting most of the political attention the last couple of weeks. The debate about it is over. It is now law of the land. The question becomes will it do what the gop said and upgrade job and boost the economy . What are the rich doing to make more money Michael Sonnenfeld is chairman welcome. Thank you. Good to see you again because so many of your members either ran companies, built companies, owned companies, they are the job creators. Right. Youve surveyed them, talked to a number of them. Do they believe this will add to Economic Growth or like the left says, just in the rich, the already rich so its a bit of a mixed bag. Anybody whos an entrepreneur is feeling like theyre going to get a boost, theyll have more money but the concerns are whats going to happen to the bond market and the deficit. Will it drive Interest Rates higher with the new fed chief, hows that going to play out is it going to be played to perfection i would say our members are cautiously optimistic about the economic environment but there are some real concerns. Thats interesting. Is it fair to call it then like a scale . On the one hand you have the positive benefits of the tax cut and on the other hand the potentially negative effects of the fed, an unknown fed quantity balancing it out. When our members talk in groups, theyre trying to figure out whats like the balance here sometimes small increments dont make that big a difference so will there be more spending from the middle class probably not big enough to make a big difference on balance they think there are pro Business Activities and growing is the biggest concern. In general do members say their taxes will go up or down under the tax bill so the blue states, which is where they are 35 members, west coast east coast red states, probably it will go up a little bit. Thats probably the best they can make out of it. Do they say that as a result of that they are going to change their spending habits or what they do with their money i think everybodys looking at the neighbor next door. Is he going to move out of the blue state is it going to bring down the housing prices is it going to change the number of businesses that are going into the blue states its too early to see because you cant say how much impact these are going to have, but those are more its the environmental concerns. It sounds like salt is the number one concern. Thats the number one concern thats been talked about in your groups right east coast west coast in new jersey, hey, help us get richer doesnt matter if you have 5,000 to invest, 5 million, 5 billion to invest. What are you doing to grow your assets sure. So last year clearly was a beta hugger year. If you had broad market expos e exposure, you had a great year champaign popping. Next year may be more of a stock pickers marked. Theyre much more focused on private equity and on real estate and the reason is when theyre talking to each other they say, so, how can i really get the biggest impact its direct investment putting my hand on an investment, cash flow and so forth. So theyre 73 risk assets theyre still risk on. Very confident about the economy right. But theyre going where they have an edge. Our members have an edge in the private equity area. Theyre getting extremely interested in bitcoin. Thats the number one topic talked about in our groups across the United States, canada, and europe the reason is that bitcoin has a bit of a lure like gold. Is it a longterm store of value . If youre running a business and taking bitcoin in exchange with this kind of volatility, its a little tough if you look on our private member website you get people saying, i bought it, i dont know where i can sell it its still in its infancy. The normal mechanisms are not all in the right place. Is bitcoin like that obscure french movie that everybody talks about because they want to sound smart but no ones actually seen it are they doing anything with it. If you come to one of our monthly groups which we have all across the country, inevitably one person is saying heres where i can unplug theyre talking about scare buys to have it but its not just bitcoin, its all of crypto currency and more broadly block chain. Were trying to figure out from group to group how is block chain going to change the world . Interesting stuff, michael. Tiger 21 thank you. Thank you. How will tax reform impact restaurant stocks in 2018 . Will people usthr e eitax cut money to go out and eat . Were digging in next. [vo] when it comes to investing, 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. Yes or no . Gin. 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. The tax bill that President Trump signed into law slashes the Corporate Tax rate that should help fuel Earnings Growth in a number of Industries Including the restaurant sector. As a result there are plenty of food chain stocks that are poised to gain in the new year bob darrington and chris oco, ill start it off with you theoretically we should be looking for companies that have domestic sales, not much of a foreign start, right much will benefit from the start especially those generated in the u. S. Obviously, but also companies that are highly franchised we think a lot of Restaurant Companies will probably return some of those savings from taxes to their employees with higher wages and some additional benefits to retain good employees. Give me some names, chris i think dominos pizza, wings stop not only from a lower federal statutory rate but because their franchisees will be in a better position to open more stores. Right. Theyll be saving money. Bob, to take this analysis one step further, can we also overlay the states that might be hit by the tax bill and figure out which companies are actually more levered to those areas . Yeah. The higher state rates are typically california, new york, you know, i think a lot of Restaurant Companies probably not in new york i think certainly theres some potential impact there, theres no doubt about that. Bob, the good thing about this story is we have historical precedent, do we not you have gone back and looked at the 20 thousand three tax cuts do i spend it instead of holding back, do i spend it at Buffalo Wild Wings or applebees its a lot more significant around the brands that are better operators that consumers feel a little bit better, comfortable with texas road house likely, theyve certainly benefitted mcdonalds, starbucks, those brands have seen big benefit in years past and likely will passed our theme today is whats going on at the malls and looks like we have seen some what of a retail resurgence over the past months or so, is it help putting traffic in stores . The woes at retails and malls detracting from traffic into those of Starbucks Stores . Yeah, it definitely helps to see traffic, definitely help Restaurant Companies restaurant sales and casual dining sales have been volatile and week to week, we have seen extreme move in the sales. Casual dining and Restaurant Industry should be benefiting in the Fourth Quarters from improving sales. The other angle is we have seen private equity activities, Buffalo Wild Wings and olive garden and dardens rather, do you see well see socalled ak vi v activists and getting in they are beating up. Yes, well continue to see activism and i think well see continuing in the space and there is a lot of money going into the private equity groups that are focused on restaurants base private equity evaluations for restaurants are higher than Public Market evaluations. You will see activism and i think it will be a pretty active space next year. Quickly, bob, help us make some money for the new years. Good restaurants for us to be in is what . Jack in the box is going to have al g good year not only testing with munchy meals, i think there are a lot of benefits the business i they theyink theyll be stro performers i think you said Recreational Marijuana and you should increase snack food sales. They may have a new munchy meals that they are coming out and testing. They are testing a meal directly targeted to that group you cannot make this stuff up thank you thanks. Teslas shares is up nearly 50 this year. Far higher than traditional automaker like ford and gm ll athwinying drive those stocks up next year power lunch will be right back it is the time of the year where we cokick out the old yea and we look at 2018. Phil lebeau. The autobusiness will slow down in 2018. Sales are expected to fall 3 to 5 due mainly to a slight pull back in demand still, trucks and suvs will remain popular picks in showrooms thanks to gas prices remaining relative lily low you can expect sales of electric cars to charge up in 2018 thanks to two high profiler vehicles. Gm expects sales of the chevy bolts to increase of a full year of nationwide sales. Expect to see plans for sell f driving cars to expand in the next year. Glamo will start their sharing service. Gm will go to the streets of San Francisco to new york. Setting up 2018 to become a crucial year for an autoindustry going through a technological transformation cnbc business news, chicago as we continue to take the wrapping off the 500 tax bill, tax law, actually, we are carving out the goodies. Thfol tell you who benefits r e bill power lunch will be right back news anchor downtown traffic is still bad. Expect massive delays. news anchor 2 all lanes on highway 50 remain closed at this hour. news anchor 3 the stats are in and this city leads with some of the worst traffic, with the average driver sitting in gridlock the equivalent of three days a year. For every hour that youre idling in your car, youre sending about half a gallon of gasoline up in the air. That amounts, over the course of the week, to about 10 pounds of carbon dioxide. Growth is good, but when it starts impacting our quality of air and quality of life, thats a problem. So forwardthinking cities like sacramento are investing in streets that are smarter and greener. The solution was right under our feet. Asphalt. Or to be more precise, intelligent asphalt. By embedding sensors into the pavement, as well as installing cameras on traffic lights, we will be able to study and analyze the flow of traffic. Then, we will take all of that data and we use it to optimize the timing of lights, so that traffic flows easier and travel times are shorter. And sacramento is just the beginning. With advances in cameras, sensors, and network speeds, we have the ability to make cities smarter, and happier. What excites me about this technology is that were using some of the most cuttingedge machinelearning, and ai, to help solve the most fundamental challenges that cities face around the world. Who knew asphalt could help save the environment . lani and the possibilities are endless. Another day of work. Why do you do it . Its not just a pay check, you actually like what you do. Even love it. And today, you can do things you never could before. Youre developing ai applications on the cloud. Finding insights hidden in decades of medical documents. And securing millions of iot sensors. So get back to it. And do the best work of your life. Welcome back, now that tax reform is out of the way what is the next item on dcs agenda in maybe a massive intraf intraf infrastructure plan . The name that could be fighting for existence heading into the new year. An investor taking a bite of the apple today, sales are down concerning the iphone 10 sales and big cap tech is also having a big year, is that a great stock for you into 2018 . Well find out, brian sullivan, and the second hour of power lunch begins right now. I am melissa lee, two hours left in the trading day, lets gate check in t get a check. The dow and s p 500 and nasdaq is still higher. Transport continues to set another record into todays hike today. Check out the apples supplier they are down anywhere between 1 and 4 . We are watching the airline according to the trade group the senior cause jumped 8 because of fewer labor and maintenance while revenues are not jumping. Christmas maybe over but everybody out there is unpacking and Stocking Stuffers that are in the tax law ylan mui. Brewers are going to be enjoying the lower federal xi taxes for two years under the legislation. For small brewers, the tax gets cutin half. The industry have been lobbying this over a decade it is rob portman whos delivering this. Live deductions will get to take advantage for the expensing of the cost of the show thats the tax break thats expiring at the start of this year, the new law puts it back in cnn made a pit stop. They get to carve out for riding out the cost of damage plants. Backup north, jolly old elf made one more stop atlas alaska. It sounds random but worth remembering. Lisa murkowski was a key supporter. Well find every last one under the tree from the lobbyists. I have a feeling that you are right about that, ylan thank you very much. What is next on republicans agenda on 2018 john harwood, what do you think . Do you think it is infrastructure and the iword, th is that whats being tossed around republicans are fnot eager to lay out a large sum of money, we may see infrastructure building involving a small federal out lay but tries to Leverage Private money beyond that. I am not sure if thats going to be enough to get the dem eocrat support to get it done they kick the can to january, they got to deal with things like alexander and stabilizes obamacare. And for the permanent status of those dreamers who were brought here as children to the United States illegally maybe it is unfair for know call the republican agenda and we know and you know and melissa knows and i know that there are democratic infrastructure plans out there. John delany has one. I know there is two or three floating out there with democrats or republican sponsors, so is there any hope for partnershbipartisan ship inw year democrats got encouraging results from virginia and alabama elections. There is a fundamental divide on infrastructure between those, democrats who want to serious out lays immediate job creations and republicans who are k llook more to provide senates and private sector firms to generate infrastructure, democrats are not likely to provide any votes for that do you agree most people see the tax law as a win for republicans. It is a matter of time before most americans will see the impact of the tax law on their paychec paychecks . It is going to be february or march time frame. Right, people will see the actual impact of the tax law if the later mark continues to tiel tighten, they may see the issues and they see paychecks are getting bigger because economy is getting stronger. Things are going well which may have to populate the tax off one thing of the infrastructure, i am optimistic than john harwood of seeing something done are republicans willing to go beyond just the original trump infrastructure idea of tax break for business if they want to combine tax break for business for investment or direct spending, it is not possible to see how a deal might get done. And potentially for republicans to make individual tax cuts permanence . Republicans are going to make democrats, make a tough vote republicans are going to want to make those individual tax cuts permanents and well see if democrats go along with it democrats are concerned of democrats, they may make them vote for the extended tax cuts because they dont want to raise taxes on people in these out years. It is that time of the year where i ask people like you to give surprises we know there is a lot going on and there is still investigation into or around the president do you have one or two political sort of black swans, those are unforeseen, something out there that could be a surprise next year i think on a smaller scale, listen, we just had the fcc repealing the neutrality rules there is some legislations floating around. I can imagine bipartisan legislation, both sides adprgren to and combining that with new spending in municipal broad band i think thats something that could actually happen. Whats the critical in your view for republicans in terms of preserving their majority when it comes to 2018 elections they need to hope that Economic Growth remains as robust as it has been during the middle part of 2017. You know republicans have suffered politically and donald trump suffered politically despite a good economy and i think one thing that might change that trend is if they all of a sudden see a surge of growth that makes them think that this is because of donald trump. Polling right now says a lot of people describe the success of the economy to policies that carried over from president obama and so that has provided before the state of economy of under trump but has not lifted his ratings. If you get a big lift of economic performance, that could happen last word, jimmy, to you. If we get down to a low threes and the way Goldman Sachs had, people are going to nose that. Ail Approval Ratings will go up and we wont be surprise of republicans. We have 6 million jobs right now. Well see if thats technical possible i am being upbeat why not melissa through vodka in my bottled water earlier. Thank you both very much. Exactly upload the fifplea the fifth you are right. The dow and nasdaq, all double gains this year will the bull market keep ongoing. Great to have you both on this holiday week, shannon, i will start with you with the most important discussion of 2018 for the trump administration, do you foresee that and what your wild cards in your view we do, we think 2018 is going to be another good year. If you look at the under line fundamental data, whether it is unemployment or wage growth and we see a lot of continued str strengthening and manufacturi s manufacturings thats going to help the financials the wild card is the fed the markets pricing is in two if we see that wage growth take, your prior guests talk about unemployment of the threes thats going to be a big growth. The feds are definitely going to be aggressive if that occurs we are seeing something that the market wants to see what happens, some sort of sign inflation and thatll be a negative for our equities. I think it is about 3 , that could end up being negative for te equities i think the Central Bank Policy in general is our wild card in 2018 david, it sounds like you are you are going to be optimistic given the improvement of gdp and gps, do you believe it will benefit the most, small caps or infrastructure stocks . I think at this point, it makes sense to invest in those sectors that are likely to benefit the most from tax reform well not see it for a couple of quarters we need to see higher corporate spending and wages but, today if you are investing beginning next week, you are going into the new year, you want to put those money in the sectors. The proof will be in the putting. Well have to see the tax cuts flowing through the economy. There is so much momentum and optimism despite the fact that we foresee some sort of healthy sell off and corrections because volatility have been so low, we are optimistic for the whole year is it the atm for which you withdraw the funds that you put in to those sectors that you like from increase Capital Spending what we have seen the past couple of years is broad sector rotations so selling the sectors out performed or under performed. The risk is you are going to see some money coming out of technology they dont stand to be the best and biggest benefit and going into financials and consumer stocks and thats a play you may see but again it does not mean technology is a bad place to be. As sector rotation occurs, technology maybe a loser near term shannon in terms of your pick sector wise, you do Like Technology but you like financials and energy. Thats true we still do Like Technology because there is an ability of technology we have not seen and really seen sort of a diminishing ability for the consumer size pushing price increases. We like energy, you are seeing energy, oil prices really in a stable range over the last several months and quarters. We think there is a lot of opportunities there. We think there is some opportunities for companies to make solid acquisitions there. On the financial side, i mean everything points to a potential tailor and lower tax rates and the feds are raising rates and a business perspective, financial stands to benefit from that. Small the mid financials is a nice combination there and deregulation on top of it david and shannon, thank you, happy new year happy new year to you as well 2017 is a year to forget for many retailers we had several bankruptcies. Toys r us and many others. Will retails be saved next year or well have more for 2018. Well discuss next on power lunch. Cannot live without it. So if you cant live without it. Why arent you using this guy . It makes your wifi awesomely fast. No. Still nope. Now were talking it gets you wifi here, here, and here. It even lets you take a time out. No no yes yes, indeed. Amazing speed, coverage and control. All with an xfi gateway. Find your awesome, and change the way you wifi. Check out shares of tesla. Elon musk says the company will build trucks soon. He promised to make a model y. I have had the elements on my mind and i am dying to bill uild why. You may remember tesla announce plans for pickup truck in last july teslas shares have had a strong year for 2015. The past month it has a little bit of kicking ground here you can put a trailer a lot less and call that a pickup truck. There is a whole sloth of people who loves their pickup truck. For many retailers, their employees and shareholders, many brick and mortar retailers losing traffic and speed all of 7,000 total stores in closing. Some of these stocks have done well and still signaling problems aahead. Lets bring in the perry with b. Reilly financials. Thank you for joining us some of the deaths in sears, trading at 30 rates have their under line financial conditions improved . Well, some have, brian. It is all over the place. You got some really good stores and great change they have others that are teethering for a couple of reasons and it is not just the internet and it is not just amazon is it fair and amazon gets blamed for everything thats wrong . It seems like it is anyway is it better to blame and i hate to use the word blame, but blame private equity in a way because so many bankers that we have seen are companies bought by private equities levelled up and relaunched without a Balance Sheet thats capable of standing on its own it is not just private equities and debt in retail have been bad it is been bad years in the 70s and 80s the vendors who sold to the company did not want them to have debt. Michael milton came along in the 80s and had all the leverage financing that over leverage the companies and when you have thin margins and you need to have operational perfect. It is difficult to have a leverage balancing sheet in details. What does allow or allow companies to do when it comes to expensing debt interests is that the nail coffin for some of those over level retailers . Theyre not paying taxes because theyre not making any money. It will have an effect on Free Cash Flow and thats a big metric that retailers need Pay Attention to put all of this together and shake it up. What comes out for chaompanies that are in trouble. If you look at other retailers like Neiman Marcus, they dont have thousands of locations, they are in Central Location and specific locations but, they have their own vendors competing against them if you are in Neiman Marcus and new york city, you go ten blocks down to addison avenue and you have a lot of the same vendors that are competing with them and selling or have their own stores have we over stated amazons impact in retailers or under stated thats all we talk about. It is not just amazon it is a different channel and you dont have to go to the Stores Stores like macys are figuring it out, are they not . Macys and nordstrom is figuring it out. Bed bath and beyond, they have incredible cash flow what are they doing right no offense to bed bath and beyond, towels and other stuff yes, ops there is 90 of the population could go into bed bath and beyond store. There is not a lot of competition like target. So you would not be in equity but you want to be under debt. Well, i think their equity is under valued i think that their stock prices gone down quite a bit in the past years and more in past three years. Just think about it. Thats online operation kicking in more. Would you buy from bed bath if you were not familiar with it. I think there could be an upside of their equity. By the way, bed bath and beyond is up 2. 5 now. Thank you very much for coming on. Happy new year. Happy new year. Kia lifeline in saudi arabi mang the prince an offer that he may not be able to refuse, those stories are coming up on power lunch. 6 30 . Sams baseball practice. 8 30 . Tai chi. Yeah, so sounds relaxing. Alright, 9 53 . I usually make their lunches then, and i have a little vegan so wow, you are busy. Wouldnt it be great if you had investments that worked as hard as you do . Yeah. Introducing essential portfolios. The automated investing solution that lets you focus on your life. Your bbut as you get older,ing. It naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. Jack and jill went up the hill to fetch a pail of water. All because of a burst water pipe in their house that ruined the Hardwood Floors in their kitchen. Luckily the Geico Insurance agency had helped them with Homeowners Insurance and the inside of their house was repaired and floors replaced. Jack and jill no longer have to fetch water. They now fetch sugarfree vanilla lattes with almond milk. Call geico and see how affordable Homeowners Insurance can be. Raphael just fourt are brothers who hate bullies, and love this city. Leonardo woo michelangelo whoa haha. Leonardo gear up guys right in the heart of the was in his financial crisis, and saw his portfolio drop by double digits. It really scared him out of the markets. His advisor ran the numbers and showed that he wouldnt be able to retire until he was 68. The client realized, i need to get back into the markets i need to get back on track with my plan. The Financial Advisor was able to work with this client. Hes now on track to retire when hes 65. Having someone coach you through it is really the value of a Financial Advisor. Audelia authorities demanding that prince alwaleed pay 6 billion to free himself he was arrested last month of what was built of the crack down of corruption. Alwaleed offered a stake in his company instead of cashing payments for his release imagine if he had raised funds . It would be a fire sale. And other stocks on twitter which hes a big holder of theranos gets 100 million lifetime from fortress theranos considered one of the best funded and led to federal probes and several lawsuits and the shut down of its testings. You cannot return cereal, thankfully but you can be a serial returner . You cannot return food. Maybe you can anyway, well turn automatic serial well turn automatic serial returners, coming up and oil i at a t2 1 2 year high. Well bring those numbers next on power lunch. Researching at using fuel cells to capture Carbon Emissions at power plants. This is the potential. Reducing co2 emissions by up to 90 . While also producing more power. This could be big. Energy lives here. I just finished months of chemo. But i dont want to talk about months. I want to talk about years. Treatments have gotten better, so. Im hoping for good years ahead. Thats thanks to Research Funded by the american cancer society. The same folks giving me free rides to treatment, insurance advice,and a place to stay during chemo. I need that stuff like you dont know. And now that you do, please give at cancer. Org yes or no . Gin. 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. I am Morgan Brennan with the now cnbc update. Puerto rico is estimated until may to get power back. Power is generating of 70 before the storm a terrible fire ripping through the denton business this morning. Thankfully no injuries were reported but the cause is still unclear. It is official, eerie pennsylvan, pennsylvania has had the most snow than it every had eerie had 52 inches so far this month. Thats 31 inches above normal. The weather of the story comes from duluth, minnesota an even more severe cold front of minus 9 degrees here is what happens when the two met. It was a world wind of clouds and steams and it soon to be roc rocks, solid and cold video. Pretty cool video but i would not want to be the photographer out there capturing that at minus 9 degrees. Thank you, brennan. The market is Holding Steady. Telecom and energy is the best sectors and financial is the biggest lagger crude prices is jumping remember that pipeline in libya taking out 900 Million Barrels a day and that sent prices higher. Many company brawling at each other in some nasty fights josh lipton in San Francisco takes a look at that side of the story. Lets start with apple and Qualcomm Qualcomm wants the percentage of the iphone selling price bernstein says this fight continues next year with both sides jocking for position and going for trial which may not happen until 2019. Qualcomm making it vulnerable target for qualcomm and wants to buy its rival. Qualcomms board has opposed and even if broad com wins the battle next year, this is the third of the Company Behind intel. Amazon and google which is pulling youtube from streaming devices. It does not sell many of googles hardware products google is concerned of monotizing Youtube Content and amazon leaving that content to make its platform competitive. There is fights of the future of technology wamo accuses uber stealing Technology Uber fights back. This one is going to court the trial is set for february 5th, in San Francisco. You mentioned qualcomm and broadcom and if there is any sorts of a deal forward. Is that going to happen and do analysts say that was a great photo opt. I am not spoken to financial analysts who cover the company and melissa getting into the photo opts i have not heard a lot of talk about the presence there at the white house may have mean. Hot tan is going make that case and hes nominated of the 11 directors. Can the ceo make the case to shareholders with the Shareholders Meeting coming up next march josh lipton in San Francisco. Apple shares are under pressure right now the biggest drag reports that iphone 10 is slowing overall, texts have been the best factor. So whether the techron, you take a look at apple here and what we are seeing on todays session on a time of Economic Daily report of no specific sources that happen l will take it down you see the impact on stocks and ecosystems that maybe tech right now given peoples notions it is typically foa time for rotation. We think the sector is going through rotation and the megacamp technique certainly had a great year and the more value of tech names thats been left in the dusts a little bit. There is a larger evaluatety despairty. We expect it to go into value tech to gross tech, maybe those value names can be better performers in 2018 where would you put apple on that spectrum . There is a lot of oasis slices if you also take out crash so we actually own apple and we do think that perhaps, the iphone 10 is not going to meet the High Expectations thats been put in place. Getting back from the company alone, we do think it will drive the dynamics and apple describers, you know a very dedicated and loyal. We dont think this is any problem of the franchise theyre the single largest beneficiary of the repatriotuation and up to 2070 billion which they said theyll do something to shareholders once there was a new tax law. We are good with holding applicants here. Nethere is a lot of compare sops thats been made of the popularity and the surge of the cycle when the iphone 6 came out. I was reading where they were looking on chinese social media. The x was launched in the early time of the periods. We need to not live up to that cycle there is a lot of expectations thats why the stock have been doing so well. And one of the attractions about the 10 is the asp, the selling margins are very high. Even if people are looking in at the eye photoshop 10 but walk away buying the only or 8 p8 8 plus sure, we could see some consolidations in the apple stock price and maybe it does not move directly. We think the company is well supported and the growth its going to helicoptcontinue very s jordan, thank you for your time appreciate it well, it is not jutechnology in are doubling digits. Plus, a special episode of the profit. Reporting on the crystalized of all of Hurricane Maria. Well have a sneeak peak for yo, next 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 the moment a fish is pulled out from the water, its a race against time. And keeping it in the right conditions is the best way to get that fish to your plate safely. Bacteria can multiply to high enough levels that even cooking it will not destroy all of them. Its definitely the most important thing in my business. How fresh is the fish . Where it comes from . How it gets here. The more i know, the better. Sometimes the product arrives and the cold chain has been interrupted, and we need to be able to identify where in the cold chain that occurred. We took our world Class Network and we developed devices to track environmental conditions. This device allows people to understand whats happening not only with the location of that asset, but also if its too hot, if its too cold, if its been dropped. Its completely unique. We ship fish, beef, poultry, vaccines, insulin. This is about monitoring and protecting everything we ship. I catch all this amazing, beautiful fish and then once its out of my hands, i have no control over what happens to it. If you have a sensor that can keep track of your product, it keeps everybody kind of honest that way. Its really all about the network. You are looking at trillions of transactions a year. Not too Many Companies in the world can even scale to that type of volume. Who knew a tiny sensor could help keep the food chain safe . Food has to be fresh. Its that simple. It is been months since turkey is devastated marcus have been to partitio several times soon and has a new documentary airing tonight on cnbc you want to see the real strengths of Hurricane Maria take a look at this. You live on that side yeah, i live on that side up in the mountains. Across the river is the neighborhood of rio. The storm destroyed the bridge and with it, the only way in or out. Locals luke carmarie has to use this a shopping cart wringed with cable when people realized they have no way to build supplies, they built one it is also how we are going to get our cameras across. We have to pull this and bush it, are you ready . And then there is this. The ladder marcus was about to clown is the only way people can get and and out of town. 10 00 p. M. Southeastern cnbc we are opening up our annual play book. Seimon moody joins you now most importantly this year and next year. A strong year for hotel stocks take a look at marriott and all up over 40 this year. Out performing the and p 500 here is what you can expect for 20 2015 we could see a ak antsy rates. Second for travelers, expect your hotel room to get a tad up grays. Seem less check ip and pure rated content are among the others theyll create and connecting rooms. Dont be surprise that we wont raise for these smoart rooms rai raising up the race is onto build ships that cater to the new wave of travelers. But, expanding into china is no easy feet the chinese travelers shopping over sunbathing and waurl 2i6th crew line has to build their ship china is not just porpt for cruise line, we saw the feature online price line have been significantly in new claires and Time MarketingRoyal Caribbean had their, theyre made in voyage a few years ago and seeing richard fang also on that ship in the port of cit they need to bill new ships and creating a whole speerexpere how does that compares to getting out of the shift or miami . It is very, very different. Chinese people dont like to sunbathe so you dont see much activities a t the pools the shopping area was not big enough that should be good though. You are spending money it is capital eintensive so you have to redesign the whole sherif fif. I figured it out. This it on and sholof it all i patented during the commercial break, here very good so much to enjoy here i am trying not to be forecast tick. More smarter when the show its over did you dpift a gift this hofl day weekend that you did not like and plan their return if you dui, ru nyou are not alo. The return will tell you when to hit the ball we dont want you to waste your time going, stick around and today, you can do things you never could before. Youre working in millions of places at once with iot sensors. Analyzing social data on the cloud to create new designs. And using blockchain to help prevent fraud. So get back to it and do the best work of your life. Your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. 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. Jest over an hour ago at the closing bell bob pisani is joining us right now. Hey bob. Narrow trading range and like volume understanding we are getting the turning in market that we have seen all years. New highs and a number of sectors. Retailers, we have been telling you about unusual to see retails moving up so much. You never see years where some of the big names down 10 . The Energy Sector that we have been seeing today, oils moving towards 60. A whole bun p ch of them are nicely the libyan pipeline and you see some of the other ones Urban Outfitters and Michael Koors some of the transports hi caterpillar, deere, dover, some deep industrials also hitting new highs. This is one of the characteristics of the market, this rotation weve been seeing all year speaking of that, lets bring in art cakaescashin to chat about going on the big thing today, of course, oil is up on the libyan pipeline issue, but oils been moving for the past month oils been one of the big movers in december. It has. And one of the reasons the markets been so strong. Wti is pressing up against 60. That would be a bit of a breakout for them, so people are happy to see that, and i liked your little bit on the retail. Lets not forget that a month or two ago we were talking about the death of the malls, the end of retail as we know it. Amazon had conquered everybody, and now you see all these Retail Stocks bouncing back after a very good christmas season. Well, i think two things happened number one, i hope youre all listening to the numbers 4. 5 i think were the mastercard numbers we saw, healthier than people anticipated, number one so, generically, retail is getting better, amazon or not, but more importantly, were seeing online sales for some of the oldline retailers do a little better, so theyre not falling apart and overall retail numbers are strong. No, they look good. And the early look on this week is that they continue to do well after the holiday. And that could make for a really great quarter for them. Now, the big issue, and you and i keep looking at this, is what is 2018 going to look like in terms of the rotation a lot of people are arguing that you should stay in groups that might do well with tax cuts. Banks have been doing well recently, but a lot of people are arguing, if the global economys expanding, why dont you just stay in growth . Why not stay in the Technology Stocks that have been around it will be exciting to see if there actually is a handle this has been synchronized growth around the globe. There is some concern that that may not fully continue that china on the one hand and parts of europe on the other might not keep up. Whats going to be important is how do the Central Banks interact, if the ecb and fed are in lockstep. That will still be good, but theres a feeling that the fed and the ecb may end up separating. The ecb certainly wont be raising rates. Theyre still basically dealing with the effects of the liquidity they have pumped in. So theres a little bit, not of a disconnect, but theyre behind where we are. We have to see if that separates further. Global economy and europe, earnings terrific in 2017. Will that continue in 2018 and does china continue so to see the growth that helped with emerging markets . It continues to be high after the passage of the tax reform act. As to china, they seem to be having some problems with their Bank Liquidity well wait and see how that turns out. Well have an answer to that within maybe two to six weeks. Well see what happens. Weve taken a look, tomorrow, rather on thursday, weve taken a look at some of your predictions for the last five or six years that im proud to say, most of the time stock prognosticators get it wrong youve got a decent track record well put up arts predictions on thursday for the last five or six years and i think youll be pleased with most of them. I was pleased with the scotch you brought me. I watch him pretty carefully. All right, guys, well talk more about that on thursday back to you. Good stuff, bob and art thank you very much. Well, in all the gifts that you received over the holidays, there is bound to be one or more that, you know, youre like, i dont know, im just going return that one. But wait just a moment eric chemis here with a warning on returns its not just that your mom might find out, is it . No, no, or your parents or whoever, relatives a full 10 of holiday sales are returned, actually, and today, december 26th, is usually the biggest day of returns for the whole year, but be careful when youre returning that unwanted gift because you are being tracked and you might get a oneyear ban from any future returns at your favorite store thats because theres an equifaxlike company that rates whether you are a problem returner its called the retail equation, and its main goal is to help stores stop fraud, like people who repeatedly wear something and then return it, or crooks trying to get cash for stolen goods or organized crime printing fake bar codes to change the prices on expensive items. Regular shoppers who do nothing wrong might get caught up in this if they return something that possibly matches a pattern displayed by crooks. The company says 25 of the top 100 retailers use its service, including best buy, victorias secret, home depot, jcpenney and nike thats why youre sometimes asked for your i. D. Card at the return counter, so retailers can track you. After authorizing 600 million returns, the retail equation says 99 are legitimate, but some innocent shoppers might get falsely banned this week the good news is, though, if you happen to get banned, you can contact the company and ask for your return history and you can ask them to unblock you so you can keep returning and exchanging. What are some of the patterns that would trigger, like, the software saying youre a problem returner so, the most common factor is how often youve returned things so, if youve gotten multiple returns at that store in the past 12 months, thats the first factor, but multiple meaning, over 12 months, thats a long period of time and if in the end you end up spending money at the store, does that offset that . Youll notice there are a lot of Message Boards where this has happened to regular shoppers, and theyre like, ive been shopping at best buy for 20 years and ive only exchanged three things this year, but i bought 5,000 worth of stuff and i got right. You had a bad run. And im never shopping there again. So a lot of innocent people will get hit with this, but its like the Machine Learning algorithms. Theyre trying to figure out the factors between price, receipt, frequency, what kind of item it is, which store you went to. And if it just happens to look like a pattern that some bad guys are doing, youll get tagged, too. How do you prove youre not bad . You just talk to the company and explain to them, like this, just hey, i bought this, i have the receipt, i have it in a box. Ive bought all these other things ive returned a small fraction of them. Contessa did a powerful piece a few weeks ago about people returning it for cash to buy opioids because they dont have the receipts. Right so, they do the whole thing, too, as well. Or some people will buy things from outside and bring it into the store because they want eric chemi to be a Loyal Customer and not having a receipt, you want to be happy, but at the same time, something on going on. Most of the cases, theyll say youre late, youre out of the 14day window, you dont have a receipt but well let you, so on the flip side you may get away with things you wouldnt have in the past. News you causn e. Thank you, eric chemi. Check, please, is next resolution 1 binge more. Join the uncarrier, and get four unlimited lines for forty bucks each. With netflix included. Watch however you want. On your phone, tablet, or tv. Lets rock this joint they always refer to me as master sergeant. They really appreciate the military family, and it really shows. Weve got auto insurance, Homeowners Insurance. Had an accident with a vehicle, i actually called usaa before we called the police. Usaa was there handson very quick very prompt. I feel like were being handled as people that actually have a genuine need. Were the webber family and we are usaa members for life. Usaa, get your insurance quote today. Check, please. Well look at the biggest on the dow, apple on the report of the taiwan Economic Daily saying apple would cut its number of x to 30 million units. And if you mix it in with the vortex in the markets now, the idea that you need to rotate out of technology and into financials and energy and retail, some of the more beatendown sectors, and we could see pressure in tech in the early days of 201. Something to watch. Also, mine is on retail sales. We talk about it it means a lot for the economy, but its also good for the workers. We forget, theres 4. 8 million retail workers according to the government retail doing well means maybe fewer store closings and fewer people losing their jobs also, we joke about the mall on a barge. Im going to give credit to one of our followers credible l. A. Named it the bon voy barge. Very clever. Thats a winner. Thanks for writing us, guys thanks for watching power lunch. Closing bell begins right now. Hi, everybody. Welcome to the closing bell, kelly evans at the New York Stock Exchange. And im Bill Griffeth happy boxing day, everybody. Retail rally holiday sales look very strong for both brick and mortar, and lets face it, for amazon. Have retailers finally figured out how to take on the online behemo behemoth former ceo of walmart usa and the former ceo of toys r us, and also hudsons bay, will give us their take on a quick assess