bob pisani is in hollywood, florida, tonight. >> 2500 investment professionals descended on hollywood, florida, to hear the latest investment advice. the keynote speaker brand-new ceo buckley announced that the revolution around low-cost etf index was going to continue and these would keep coming down. >> the reason it's underperforming, your fees are too high. it's a competitive business. it's tough to find excess return in a zero sum game. you have to lower fees so more people have a chance of outperforming. >> reporter: there are worries on the hour rise sgron. one of the threats to the stock market rally was a trade war. >> it will be mostly about trade. what could go wrong with trade, not just brexit but what could go wrong between the u.s. and china or the u.s. and other countries in north america and what's to come in the year or two ahead. >> finally, bitcoin was a constant topic. there will not be a bitcoin etf anytime soon but one of the firms applying for a future-based etf says he still thought the fcc's concerns could be addressed. >> i think they are trying to think abou

for "nightly business r i'm bob pisani at the new york stock exchange. >>> that december jobs report that bob just mentioned saw the pace of hiring slow in the final month of 2017. but it capped a strong year overall for the labor market. in december, nonfarm payrolls rose by 148,000, which was below expectations. the jobless rate remained steady at 4.1%. that made last year the seventh straight year where employment gains exceeded 2 million. it's only the second time in recent memory that the economy has produced jobs at that pace for that long. hampton pearso takes a look at >> reporter: while there was a winter chill to the pace of hiring in december, job growth in the last three months of 2017 averaged more than 200,000 new workers added to payrolls each month. at 4.1%, the unemployment rate is the lowest since 2000. december even saw a slight increase in wages. average hourly earnings up 2.5% year over year, now just under $27 an hour. >> we think they continue to grind higher, maybe a little closer to 3% by the end of this year. if you're looking for a takeoff moment, that's pr

and as bob pisani reports, expectations a. >> reporter: it's been an amazing start to the year. the s&p is up six days in a row, about 3%, its best start since 1987. earnin season is now upon us. prices and evaluations are at record highs. it's fair to say expectations are also very high. this past quarter has been very unusual. analysts have been even more optimistic than they usually are. they typically start optimistic and then lower earnings expectatio into the quarter. that didn't happen in the fourth quarter. with prices this high, investors are clearly hoping there will be bigger beats than usual and then likely punish numbers with disappointin numbers more than usual. guidance is also an issue. the companies that gave guidance each quarter, one-third will typically raise guidance, two-thirds will lower guidance. thanks to tax cuts, investors are expecting more companies to raise their guidance than typical. that could be a problem since many companies are not entirely sure how much the tax cuts will help their earnings and may be reluctant to say anything this early. the

bob pisani takes a look. >> reporter: you might think it's time foo tak a pause, and tha unreasonable. but that's not the prevailing opinion. the street is mostly bullish. you can't blame them. all the textbook conditions for higher stocks are still in place. global economic expansion, strong employment, low inflation and low interest rates, with the fed expected to continue on a slow path to higher rates. this talk of infrastructure spending plan now, talk that wages may finally start to move up but not too much, and some strate believe the u.s. could see 3% gdp growth. that hasn't happened since 2005. bears are arguing valuations are too high. that's true, stocks are expensive. but if the economy keeps expanding, it's not hard to argue it could stay expensive. they worry about some external event like a terrorist attack or a blow-up in north korea. finally, inflation is a worry but many argue even with economic growth, inflation is likely to remain relatively muted. finally, despite the intrigue in washington, the market continues to tune all of that out. for "nightly business r bob

bob pisani takes a look at the first big milestone of 2018. >> reporter: the dow hit 25,000. it hit 20,000 almost exactly a year ago. many are amazed that the market keeps enhancing. it's not incomprehensible. china has had gdp growth at 6.5%. the japanese market just closed at its 26-year high. businesses repor their strongest activity since 2011. the adp report has been better than expected. don't forget, tax cuts have added fuel to record earnings. instead of s&p earnings growth up 10% in 2018, analysts are talking about 15% earnings growth. what could kill the rally? historically the two biggest killers of bull markets have been recessions, and aggressive fed rate hikes. there's no recession on the horizon. if the economic data continues to surprise, the fed may get more aggressive. but that's a story for later in the year. the bears argue the market is expensive. it true, but when you have an economic expansion like this, with a rise in earnings, the multiples can be higher than normal. the final bear argument, a terrorist at or a serious conflict with north korea ma ma

bojangles' southern jo bob pisani joins me on the floor.tum in the past month, continues higher >> remember, strong economic numbers, adp, helped markets this morning we want to remind everybody this is a global rally. look what's going on around the world. chinese authorities maintaining 6.5% gdp growth. helping asian markets. nikkei hitting a 26-year high as well today the euro up strong nearly 2% euro's own businesses reporting best numbers activity since 2011 the dow jones, of course, 25,000 i'll give the adp credit for that a remarkable number. take a look. mentioning the banks earlier new highs across the board all the major money center banks at newheiss. a long, long list and industrials as well. the breadth is strong. fedex, norfolk southern, all strong materials strong as well a story all throughout the year as melissa noted earlier what's not on list, interesting, tech stocks. cisco, only major one that's at 52-week highs now. why the rally? it's not incomprehensible. beside the strong economic numbers, the tax cuts, people incre

. >>> bitcoin making a comeback as its rivals gain ground bob pisani is at the nyse. , bob. >> reporter: hello, melissa. bitcoin is rebounding big time it took off on heavy volume around 1:00 p.m. eastern time, up 12% on the day. ethereum, its rival, is also strong early on but it sold off about the same time bitcoin took off. but ethereum still ended the day up about 13% what happened? bitcoin took off right about the time "the wall street journal" reported investor peter thiel made a significant investment. he bought 15 to $20 million of bitcoin. "the journal" reported those holdings are worth hundreds of millions of dollars. it wasn't feel whether the founders had sold any of their holdings bitcoin may be king of the crypto hill but the upstarts have made gains. ripple and ethereum are now almost one-third of the market capitalization of bitcoin. this may be the year for digital currencies from governments. venezuela is reportedly launching their oil-backed cryptocurrency soon, maybe this week, backed by 5.3 billion barrels of oil that's what they say now, and russi

. >> thank you bob pisani let's bring in michael santoli with an eye on the volatility index spiked above 16 today. >> it's at the highest level since august we all know last year, 2017 was one of the calmest years on record, depending on how you measure it it might have been the calmest in more than 60 years back to the mid-'50s what we know about this year when you have slow and steady events is they're followed by a jumpy market not necessarily a down one the way to think about it is whether an airplane has kind of leveled off after the steepest part of its assent, it doesn't fall out of the sky but maybe you have a little more turbulence that seems to tb what's going on pent-up selling because we went up in a straight line. you also have kindling inflation expectations and a little more doubt about what the fed reaction might be. that's all playing into it, too. also heavy inflows into stocks it's a more emotional higher energy tape. i think that has to do with the upside and downside. even when the market was going investigator skal in january, we were talking about how the vix was i

china ordered the closing of operations of the large share of bitcoin supply bob pisani is at post 9 michelle caruso-cabrera is in washington at a bitcoin mining facility, where she's been walking us through what these servers look like at scale hey, michelle. >> hey there, carl yeah, you want me to explain them right now so, we are in washington state it is home to a dozen bitcoin miners like this one there are 1,800 servers in this room and this particular company has three locations. it's the salcido group they are mining 5 to 7 bitcoin per day, they want to get up to 50 by this summer. they are using enough power to power 11,000 homes they want to have 42 megawatts of power by july, which is why they are in wanatchi, which is home to the columbia river, with dams that provide extremely cheap power, only two to three cents per kilowatt hour. the public utility says right now there are 12 miners, they've had inquiries from 75 more since the price of bitcoin went up four of those inquiries are for 100 megawatts of power right now their peak capacity is 200, so that's an enormous inc

cryptocurrency is getting crushed as one of the largest markets is getting ready to crack down on it bob pisani is live at the nyse hi, bob. >> reporter: hi, melissa south korea's justice ministry is preparing a bill to ban cryptocurrency trading it's one of the marriage markets for bitcoin and ethereum as well ripple "the wall street journal" is reporting that china is ordering the closure of bitcoin mining operations they've already shut down exchanges that trade cryptocurrency this is ramping things up a little bit a u.s. senate panel is holding a hearing next month with top market regulators on the risks cryptocurrencies pose to the u.s. financial system. elsewhere, for all this ruckus around bitcoin, have you noticed that bitcoin has been fairly quiet since bitcoin futures started trading on december 10th on the cboe? it traded in a wild range going into that. other than that brief blip up, it's been between 13 and 16,000 since then pretty quiet compared to the wild rides of ripple and ethereum, for example. there may be something to the argument that introduction of futures has made bitco

least fairly valued, maybe not crazily overvalued, but i think fairly valued. >> let's bring in bob pisanis on the floor. bill, we'll come book to you in one second we want bob to give us a look at the biggest market movers. we already mentioned ge, bob. >> e yyeah, i want to point outo remarkable the rally has been. the dow hit 20,000 almost exactly one year ago, in fact, it was january 17th, and we have hit 1,000-point rallies fairly regularly including march 1st we hit 21,000 august 1st, october 12st, november 20th. this is a pretty regular clockwork kind of thing. it's true, we hit 25,000, lower numbers, low eer percentage gai, it's still remarkable. it's a broad rally we talked about the banks. all the banks with the exception of goldman, all the big regioal. cyclicals moving up as well at the same time. many industrials hit 52-week highs today. dovers, norfolk southern, fedex, deere, textron hit highs at least on an intraday basis the material rally which we saw, commodity price, many at multiyear highs, continue. this was a big theme in 2017 playing out in 2018 as well one of the th

>> thanks so much, bob pisani at the nyse speaking of earnings, guy is at the plasma getting ready toh one stock. >> i am, mel, thanks for having me here, i enjoy the show, watch it all the time. federal express has had a huge run. years of investments, they've been spending money hand over fist the last few years to improve efficiency, improve their hubs, and proimprove technology that will start to pay dividends in this quarter in the form of healthier margins. online sales were good, holiday sales were good, no denying that that should filter right into federal express's bottom line. recently, president trump said look at fedex, look at all the money they're making, the u.s. postal service, basically you're a bunch of dummies, you have to raise prices if the u.s. postal service raises prices, it will give cover to ups and fedex to raise prices as well those three things plus valuation at 16 times forward earnings is still compelling in this environment i know fedex has run a lot but i still like it right here >> guy, ups versus fedex, how did you pick if he hfedex? >> straight valu

that the co-founder of ripple, a leading cryptocurrency, is now richer than mark zuckerberg our bob pisaniat the nyse breaking down the latest in the crypto boom. >> reporter: hello, melissa. the crypto market is getting bigger but not because bitcoin is getting bigger. bitcoin has been fairly quiet in the last few weeks, while the upstarts have made impressive gains in the past month, even in the past week. look at this ripple and ethereum combined are almost 85% of the market capitalization of bitcoin. that's a huge change from a while ago. and the total market cap of the top 100 cryptocurrencies now roughly $686 billion hoo boy, that's a big jump from even a few months ago. it's still small compared to the broader market for example, small cap russell 2000 stock market is a market cap of about $2.5 trillion cryptocurrencies are one fourth of the size of the small cap stock market and it's way below the $25 trillion value for the s&p 500, and roughly $38 trillion value of the u.s. bond market, even way below the value of all the gold in the world, maybe a little more than $7 trillion the

you can't help but think that's a positive. >> bob pisani thank you very much bk, this a new catalyst? >> i think it is a catalyst. i have talked about the wall of institutional money coming in. this is retail money coming in one of the reasons bitcoin has been so weak is a lot of the exchanges have not been opening new accounts there has been so much demand that they are overwhelmed. so as new money comes in just like in any market, just like in the stock market, that should be positive for it. a million people signing up for an app, if you are the ceo of a brokerage firm, robinhood just put you on notice. you have got to look at this asset class. a million people in a week that's a big number. >> it's interesting to me because we have been reading a lot of stuff about blockchain technology and a lot of the smartest people that you read, they are cautioning people from buying -- they are cautioning retail people. if you don't read the white paper don't buy it what's going on here is simple it's like gambling on your iphone, that's what's going on because nobody real had he knows what

bob pisani is tracking what's going on in the growth bob, you're up first what we have noticed for the session is volatility has been elevated even with markets at record highs and gaining steam as markets have been fading. >> yeah, i want to put up the dow intra day if we can. the open was amazing 4 to 1 advancing to declining stocks we had almost 400 stocks at new week highs then at 10:30, it all faded. volume picked up on the etfs, the big etfs that i watch, the vix moved to the upside. we went back and forth about the possible causes. there were some headlines out, reports about a turkish military build-up on the syrian border. that would affect the mideast and the kurds. that might have been a factor. sometimes you get these geopolitical issues. but for sure, we saw the markets sort of losing steam at 10:30, particularly around bids getting canceled that's not where people come in and actively sell. it's where people who were buying normally stopped the bids and the market drifts out to find higher levels wrrg right now, it's been a remarkable run. nearly 400 new stocks at highs h

back to you. >> thank you bob pisani. >>> lets get to rick santelli, the cme. we are all hooked in together lets look at our two-year note i see it on the board. 2008 is going to be the comp for a while because we hit 3% in 2008 lets look at what's going on in the ten-year carl just talked about it. we have go to back to see no yields at these levels there is always a clue that makes you pay attention and keeping up with rate movement the easiest. guess where the 30 year bond settles of the last day of 2016. it settles around 307 as you see on the chart many traders on the floor is going to look for the 30 year to get to the point and see where the rest of the curve is aligned. if we look at what's going on in europe, they're feeling a lot negative on rates. no, i am not talking about investor sentiment, i am talking about negativity it is at zero. it is at zero and the last time it was at zero, it was november 2015 yes, think about that. now, lets look at what's going on on the longer run with respect to the bound. there is a joke on it. tell me where bund is

steve liesman here on set on the rapidly rising interest rates, but we begin this hour with bob pisani where stocks are rebounding bob, what's going on >> slowly but surely, about you it started out rather rocky. preopen, the futures contract, where about 35k trrp some reports that china officials may consider slowing or halting their purchase we dropped seven or eight points and slowly clawing our way back, and none of that is confirmed, throw in gundlach's comments yesterday, gross's comments, take a look at bond proxies. utilities are at ten-month lows, reits at six-month lows, so that whole complex is under pressure. higher rates, of course, yields up that's helping the banks ten-year yields close to ten-month highs, so most of these banks are at the highest levels since 2008. transports, you heard earlier from tyler, united and american raised guidance helping the airlines remember, railroads have been the real performers this month talk about sectoro tags, tech has been under pressure, and remains under pressure so over in taiwan and over in korea, we saw some of the big names, t

for "nightly business r bob pisani at the new york stock exchange. >> new year, new record. what's next? brian levitt joins us, happy new year, glad to have you with us. we're off to a nice footing today, at the very at least. give us your overall view of the global economic landscape in which investors will ha to put their money to work this year. >> it's a nice backdrop for investors. if you take a look aro world, most of the major economies are growing above trend. that's something different than what we saw in years like 2013, 2014, 2015. that's a good sign. you also have inflation generally low across most of the world, even coming down in the emerging markets. you have policymakers which continue to provide support to this ongoing global expansion. >> what about the tax reform that we've seen passed? a lot of peopl think longer term it will provide some stronger economic growth. other people do not think it will. where do you come down on that debate and its impact on the market? >> at the very least it provides a boon to corporate earnings. you've seen that recently w

bob pisani watching it all unfold at the new york stock exchange bob. >> tyler, i tend to think it's something else, but there has been a change in tone. yes, we're essentially just off historic highs, but the markets stopped going up i want to show you what we're doing this week because we have been talking about how big the cyclical stocks have been recently but industrials have stopped going up you can say oh, it's ge, but it's not csx is down, they're leaders. they're all down this week same thing with the material names. not big moves down, but most of the big names are to the down side energy has a problem it stopped going up days ago and oil essentially hit $63, $64, right around there and that's been going nowhere all week so things are stalling out a little bit here. as to why,i hear some talk of shutdown, but i hear a lot about the ten-year yield remember, the most important thing is number one, no recession this year, and number two, no sudden spike in interest rates. either from the federal reserve or from the market but look, 2.5 at the start of the week 2.63 today that'

bob pisani is with quincy jones.ear that has just - >> it's strong. >> it's like a sprint. >> it really is. >> it started strong and hasn't given up yet. >> the dow at record highs as that government shutdown is averted. up triple digits keep in mind opened lower by 70 points but clearly an intraday reversal. >> as they buy stocks, they sell bonds. the ten-year got to 2.66 today, another multiyear high we wonder how much higher it will go? >> i guess stocks and yields can move in tandem. >> what's not going higher is the dollar the dollar index hit almost a 52-week low today. in fact, that is just about right there, 52-week low. >> by the way, the best performing global currency in 2018, the mexico peso despite those nafta concerns. >> now we have netflix and td america reporting coming up here in just a few minutes. >> p&g tomorrow, raytheon, caterpillar tomorrow. >> we're wading into the deep water. thank you, seema we'll see you tomorrow we're finishing on the highs, up about 140 points on the dow. records all aro

bob pisani on the floor.o one of the bigger movers, we have the news yesterday around 5:00 from altice and its parent altice nv, they are going to split. they are going to essentially the 67% of altice usa will be distributed to shareholders creating a much larger flow and wholly independent company that is being responded to very positively in the stock market this morning shares are up almost 15% this morning. again, 67.2% of that interest as you see will be distributed to altice and share hoerholders an instituting a 1.5 billion special dividend and buying back $2 billion in stock. also reducing their leverage ratio, their target leverage ratio to between 4.5 and 5 times from what had been currently around 5 to 5 1/2 times and the float will go to 42% there's a lot more stock available. there's an arbitrage opportunity here for some that might put near term pressure on shares but you see the stock is up 15%. altice nv, suffered dramatically this year over concerns in the local business, where it's business

and if the january effect plays out, today's gains could be a positive sign for 2018 bob pisani here with the story bob? >> reporter: yes, just a lot like 2017, some of the big names are moving today semiconductors doing well. lot of interest in that. we see retail stocks doing better we see energy doing better here's something curious, the banks are not participating in the rally. i find that interesting given that the ten year's been moving up utilities have have been a loser for a long time. that's no surprise here. look at some of the big banks. come over here citigroup here down 0.4% on very light volume most of the big banks, regionals in particular are down fractionally not a great month, frankly, if you want to look at january. we asked our friends to take a look at the last five or six years in january it tends to be a down month. nasdaq and the s&p and the dow industrials all to the downside. even the small caps, in fact, the small caps are the worst performing this is on average for the last five years only up about half of the time if you look at the sectors, utilities whi

>> i tell you what, it's pretty wild obviously, bob pisani was stalking about volatility. we got over the 12 level interesting around noon today in the spy, in the spooiders, we saw big put buying, january 274 puts, 200,000 were bought for 53 cents. by the way, from that moment until the close, the s&p dropped 20 points. those puts went from 53 cents to $1.37. nearly a triple -- well more than a double. a nice move to the upside. that's about volatility. that's about people that were looking at the market and understanding, you know what, this market might be, to mike santoli's point, overbought. at least for the moment. there's not a lot of energy why the market was moving up as fast as it was, so why not take a position this position, by the way, very, very short term. we're talking january. it's not like they went out to march or june or somewhere like that this was very short term, expecting a pullback they might have gotten that entire pullback just today. >> that's interesting. i was going to ask you fundamentally you're saying that people are more interested in buyi

bob pisani has more. >> hello, michael. 2,500 investment professionals, one of the largest gatherings in the world, the hot topic here, the ocean of money that keeps coming in. $3.4 trillion in assets under management and the key is keep the fees as low as important and cut them there's a massive fee war going on into 2018 and individuals who invest in etfs are the beneficiaries. the average mutual fund charges about $6 per thousand. the average etf charges 30 basis points, $30 per thousand but you could buy an s&p 500 fund, endex fund for as little as four basis points or three basis points that's 40 cents per thousand an the numberskeep going down and all of the money primarily going into the cheapest index funds out there. for example, s&p 500 funds, they're a europe, far east, index funds out there. develop market funds out there, as well. the people are pouring money into and emerging market all cheap, indexed and low cost. the other hot topic is how long's the rally going to continue everybody here a

let's get to bob pisani in hollywood, florida he's got the shakes, by the beach, a hollywood swinger g it away. >> yeah, alternative harv zest njx is the symbol. sam masucci running it you've stef into a real pot here, my friend. they started december 26th they have almost $400 million. >> is there enough to invest in? can you buy enough to have a half a billion etf fun >> you can it's made up of 30 stocks, they trade 500,000 shares, minute with us per day, and the business is growing, the companies entering it are growing, like scott miracle-gro, which has invested $500 million, they were wildly held. we have pulled them together i think our indecent parts is -- look at gw pharmaceuticals, right? it's been wildly held. not to throw a kink into this happy stories, but jeff sessions says he doesn't like this idea and will not look the other way. what if we get a bunch of fir troops stoling in. >> the majority of our countries are outside the u.s., so we'll manies like that that are benefiting through 28 states now have approved medicinal marijuana. 16 more have it on the docket. these

bob pisani is at the new york stock exchange with that bob? >> reporter: hello, melissa. take a look at the s&p 500 we're up why? back the report was so strong, not so strong it would raise tremendous concerns the fed might get more aggressive raising rates that's a big issue here. let's take a look at what the risks are to the market right now. we were talking yesterday and throughout the morning there's some signs euphoria is returning. early signs are there. economic data well above expectations and could affect things for the fed going forward. that's why it's important today that the number was not that strong and the earnings guidance, well, it's coming next week with the banks. they're expecting a lot. not just the beat on earnings. a few pennies. investors want buybacks, want capital expendtuitures raised. what about the euphoria signs? at aiii investor sentiment watches the highest level in seven years, bullish, nearly 60% are bullish. they think stocks are going to be higher. the head of one of the founders of technical analysis said he's so bullish yesterday, i

that could be a major problem and that's the main issue why bitcoin is down tonight. >> thank you bob pisanii want to get to qualcomm this morning. again that $70 a share bid is currently, well, being sought by broadcom this morning in a letter and call and substantially increases the amount of information it wants to deliver to its shareholders and allowing them to understand why they should resist this $70 current bid from qualcomm get this, 675 to 750 that's the number they're using for fiscal year '19. that number did not include what they claim of being enormous benefits from the company from its leadership and providing 5-g services as those begin to roll out by the telecommunication worldwide. this is a fiscal year 19 number. if you put a mobile to that, they say 19 times. even with the expected increase that'll come from broadcom they'll get nowhere near it. that number is being paid by apple and other licensing. when you back it out, you still have a number before licensing resolution of $5.25. they do value the resolutions of those various disputes which they believe will all take

bob pisani >> you get plugged in here often?ing to talk to the machine later. >> moving on, we're watching apple losing about half its gains today, this after jp morgan saying they see signs of weakening iphone x orders. is the prime for a pullback? we'll debate that straight ahead on "power lunch. >>> welcome back to "power lunch. i'm josh lipton with a market note on apple. a research note attracting a lot of attention from jpmorgan the title of that note, has apple gone sour? analysts saying they've picked up more signs of what they call weakening iphone x orders, they expect it to be down $50 billion, larger than the 8 line. they believe that weakness will continue in the first half as they say high-end smartphones are, in their words, hitting a plateau this year. atlantic equity downgraded apple because they saw signs of iphone demand starting to soften. perhaps traders and investors will have a better insight next week when apple reports q1 results next week. >> interesting stuff there, thank you very much. >>> let us trad

bob pisani mentioned it as well.eally been something of focus here, in part because you do wonder about can you pick stocks that both maximize the value you're trying to create as a fiduciary whether you're a pension fund or a hedge fund, or not. and do you go down that road anyway if you can raise the money against it jana certainly thinks there's an opportunity here >> call me a cynic you really think jana is super concerned about children's phone addiction? i just don't believe it. >> um, many hedge funds that have proved successful have proved successful in not necessarily being great stock pickers but meeting unmet needs in the marcus place, moving their businesses to meet those needs and therefore raising assets against them because that's the way you really make money. as i pointed out many times. marketing is a very important part of the hedge fund business. >> certainly okay, tomorrow on the halftime report, don't miss jana partners managing partner barry rosenstein he's going to talk about the letter sent t

scott, jim, back to you. >> all right, rick bob pisani. >> glreat story on the dollar index.tay on that. >> i didn't mean to cut you off -- >> gunnedlock, i got you, work with me here gund -- unbelievable gundlock, double line, you know who he is? >> absolutely. >> he thinks you're going to have after a little move in the dollar up it's going to have this move down for a prolonged period of time this year. >> that's why he likes commodities, at least one reason. >> it sounds like you agree with him, you think the dollar will go lower >> the dollar is going to go lower and like kmcommodities. that's why i like cat and freeport, aren't a lot of commodities plays, that's the problem. want to go to pisani >> want to >> sure, he's here. >> happy new year, everybody happy new year to you jim as well buying right across the board. let me show you the sectors, looks a lot like 2017. retailers doing well and semidoing well they stabilize, big story stabilizing and materials up and utilities taking up the rear this looks a lot like middle of december right here. remember where the mark

. >> as we said earlier, ibm and utx leading the dow on the upgrades let's get to bob pisani.n, still positive on the dow and s&p. let me show you the sectors and this looks like mid december, the semiconductors still up there. retail was positive just turned negative but those two had been the market leaders for a month now. and energy the other big market lead i'll show you the etfs and that has been emerging in the last month as theny leadership face utilities declining and has been for a while. i want to focus on the first one, xop, oil and gas exploration, up 6 to 7% since mid december and xng, natural gas etf, that's up 8% in the last couple of weeks on the frigid weather that we've been getting. home builders, itb, that is the one that's been doing well all year, up 50% last year the retail index up 15% since mid november again, i keep emphasizing this, how unusual it is to see retailers outperforming throughout the month of december and even yesterday they were on the upside. one thing we're not seeing, even though we're essentially at new highs is a real breakout sect

>>> let's drill down now on this earnings fueled rally ahead by 55 minutes of the fed decision bob pisani is on the floor of the new york stock exchange and joins us now. >> when you say earnings rally, it is really the boeing rally. i want to show you the dow and the s&p because the dow is up right now -- it is right now up rather noticeably. up about 0.23% and the s&p up .02% and the dow jones is up the important thing to see here is a noticeable outperformance you rarely see a 30 point basis move on the dow industrial over the s&p 500. now that is because of boeing. take a look at boeing and general electric and michelle is right, 130 points of the dow is due entirely to what boeing is doing. general electric, which is the worst performer, down 8% for the month is only $16 now. you notice the difference in price. highest and lowest price ge is 4% of boeing and there are a lot of people talking about the idea that general electric stays in the dow may be numbered with that kind of perform a-- performance over the year. nasdaq is leading and s&p up and russell turned negative. and that i

all right >> so you can see, we got s&p naz up for the seventh time in eight days let's get to bob pisani>> good morning, carl. happy thursday another strong open and a very narrow pre-market trading. didn't quite seize the this kinf move to the upside europe's down fractionally whatwe we're seeing is what we used to call the reflation trade. banks are up, but materials are up, energy is up, oil is comfortably over $64 and what's lagging is the consumer staples, the more defensive name semiconductors are finally making a move positively they've been doing largely nothing for the last couple of months see that reflation trade got to mention the airlines. new highs for delta and american you saw that strong commentary of jetblue and delta's guidance yesterday from united. and american, these have been really on fire recently, and pushing the transports to new highs. earlier, of course, it was the railroads, now it's the airlines here's that rotation we keep talking about. now we're going into earnings season tomorrow with the banks starting this will be a big one and a very, very important

equity markets closing at new records bob pisani breaks down the factors that have driven the do you past the latest landmark. >> reporter: the dow passed 25,000, quite an impressive move considering it hit 20,000 on january 17th last year, almost a year ago a lot of people are still amazed that the market keeps advancing. it's again a global rally. europe was up 2% business activity has been strong, in the u.s., the adp jobs report was above expectations economic reports continue to come in above expectations don't forget, tax cuts have added fuel to record earnings. instead of s&p earnings growth of 10% in 2018, analysts are talking about growth of 15%. so what could kill the rally historically the two biggest killers of bull markets have been recessions, number one, and number two, aggressive fed rate hikes. there is no recession on the horizon. if the economic data continues to surprise, the fed may get more aggressive with rate hikes, but that's for later in the year the bears also argue the market is expensive, and it is, but when you have an economic expansion with rise in ear

look how much we already moved >> we got a lot of milestones falling by the wayside let's get to bob pisani with some of the latest on today's action bob? >> this is quite an unusual week not just in the intensity and how much the s&p is up, but the fact that everything seems to be working. let me show you the winners this week and just the dow so, whatwere the two biggest losers of 2017 it was ge and ibm. what's the two biggest movers up this week? ge and ibm okay often get a little reversion to the mean, but two of the biggest movers in the dow last year was boeing and ibm so they had absolutely outstanding years and they, too, are up big. you get my point everything seems to be working this week. it's a little eery. look at the major sectors today. s&p up over 2% for the week. small caps are pretty well, too. growth is up, and value is up at the same time. doing well that's kind of odd and even all the cyclical names, your industrials and termaterials are doing well only things that are not participating are interest rate sensitive stocks i think it's particularly noteworthy we have a ni

bob pisani is following your money at the nyse. >> brian, a nice broad rally new highs in all the major indices. i want to show you some of the breakout 52-week highs what's interesting about this is there's nothing that's completely dominating. tech tends to be leading if you look at the new high list, you get industrials like united technology and union pacific, nucor, lennar, you're getting a couple breakouts in energy chevron last week, eog a big exploration company. 52-week highs. but see this list is not dominated by just tech or anything else, it's a fairly broad list take a look at the big story which i think is now continuing to be growth versus value. this is the way i look at it this is vanguard growth etf. you see that, twice as much in the growth today versus value. and that's been the story really since yesterday and towards the end of the year last year. so what is growth? people keep asking growth versus value, what does it mean growth versus tech stocks semis like nvidia, amazon, a lot of biotech like alexion, grow

. >>> for continued coverage of this selloff here on wall street, let's get to our bob pisani on theloor. >> hello let's take a look at the s&p 500. we're off of the lows, 2820 is the lows after 10:00 eastern time but not by much, maybe eight points or so volume right now slightly on the heavy side i'd say we're 4-1 declining to advancing stocks put up the s&p 500 for me. there we go. not really changed that 4 to 1 declining to advancing stocks. take a look at the sectors we talked about that trade, the global growth trade. it's in retreat today. you see energy is weak all the kplcommodity stocks, se are weak industrials. this is the trade all week health care week for separate reason, of course, on that amazon-j.p. morgan-berkshire story. volume is heavier than normal. take a look at the s&p 500, etfs here all slightly heavier volume. this may be due to end of the month rebalancing. look at the risk to the market, several things first, the higher rates that we've been talking about 2.5 to 2.7 on the ten year in three weeks. that's a lot end of the month rebalancing is tough to figur

bob pisani is sheer to here to explain this one. >> we've been talking about the effect buybacks haveon the market overall a lot of people were saying they may be so successful it's sergeantreally starting to i want pact the stock market the global economic recovery, the record earnings and, of course, low interest rates buybacks may be an important part let me just show you how little stock there is out here. we had the same amount of stock available as in 2006 307 billion shares all the s&p 500 companies today, 2006, 307 billion. remember the financial crisis, a lot of companies particularly the banks dramatically increased the amount of shares outstanding. so by 2010, it was up 10%. but by 2011, companies were aggressively buying back stock now, of course, they were giving out options on the other end but they were buying back stock on the back end so today, 2017, the end, there was the same amount of stock as 12 years ago what's the -- why is that important? because the amount of stock impacts the prices the price of the average stock of the s&p was $50 in 2006 today, it's $107 in

something larry was just stalking about bob pisani has been combing through those stats. he joins us with details. >> stocks have been off to the races so far in 2018, but the threat of a possible government shutdown might throw the rally for a loop, but it depends we already saw the markets loose steam yesterday. the dow closed fractionally lower. what does a shutdown really entail the government would stop spending and mostly applies to discretionary spending, entitlements, medicaid wouldn't be affected, neither would military spending really the u.s. government has shut down a total of 12 times since 1980 stocks have shrugged it off. the s&p has traded up an average of 0.2% during a shutdown. the bigger move comes after the government reopens, two weeks after the government is back in business, both the dow and s&p have logged average gains of more than 3% the dow trading positively 100% of the time, 100% of the time in that period. so any impact on the economy, it seems to be modest goldman sachs estimates each week of shutdown would reduce first quarter gdp growth by

let me bring in bob pisani on the rest you look at the breadth of the strength here today. >> yep. >>y much across the board. so transports, i think we were going to look at that and show you the ailtime hill-time highs. >> not just tax cuts delta made a specific comment that business travel is the best they've seen in the last three years so there is part of this what we call the reflation trade, the economic expansion that's playing in here >> retailers are back. the xrt. that retail etf hitting a 52-week high today that's a gain of 2.5%. xle, the energy, we highlighted that jackie was just on brent hit $70 a barrel today for the first time in a while. >> and we have seen earnings estimates for the first quarter practically double in october, we had analysts estimates that were very conservative as we got closer to the end of the quarter and oil started moving over $60, the estimate, this is for the first quart e one we're in, started going way, way up that's one reason oil stocks are back in a big way. >> now it either continues tomorrow, or it stops by hitting a brick wall it depe

half of the gains of the day two weeks ago the dow hit 25,000 for the first time now let's get to bob pisanir. >> i want to point out the dow is price weighted, the biggest prigs stocks te price stocks tend to move the index. let me show you the five dow stocks that contributed most this is a 1,000 point gain from 25,000 to 26,000 boeing is 34% of the gain. one stock is a third of the gain caterpillar, united health, home depot, 3m. eight of the highest priced stocks in the dow. put it together, 60% of the dow's gains from 25 to 26 were five companies five out of 30 companies here. what is more interesting is the days to the rally are getting small eastern smaller. each 1,000 point increment is getting small eastern smaller. look, it took 109 to go from 21 to 22,000. after that, 53 dpays to go to te next 1,000, 23 days, 7 days. you get the point. this is more than just easier to hit the target this is definitely an acceleration it is euphoria, some people say it is. but it's an acceleration this is a global rally 50% of the earnings from most of the big companies are overseas and we're seein

. >>> bob pisani is at the nyse with the staggering stats and look at what is at stake for what will be a very big earning season >> you would think it was time for a pause, and six straight up days we have some amazing statistics. at the close yesterday but wait a minute, it's going to be even better we'll get you the numbers in a few moments. >> with the winning. >>> ec, thanks, robert, my old producer for those stats i'm concerned about really high expect ache. the numbers are way up there, so people are expecting big things to happen. just on earns. fewer cuts in the earnings how about the guidance a big issue here a lot of people were expecting more to raise guidance they race it and two thirds lower. how about the other things out there? how about buy backs? thanks to the tax cuts, people and investorer are expect been more buyback here's one thing that works me, tyler. jack is here, with -- and barry bannister, you know last year by contrast funds had the world "value" in it did less well. >> i think it's a great point, tyler, the shirt -- keep in mind large-cap stocks are att

levels if a new question is -- if buyers keep coming in, there enough actual stock to go around bob pisani has this kind of interesting and new story. >> i don't think buybacks get enough credit for this buybacks are a big part of this whole game take a look at the amount of shares that are out there. a long time ago, the old s&p 500 had about 307 billion shares, all 500 stocks 2010 it went up, because the finance crisis companies issued tons of new shares, by 2017, they began buying back aggressively now we're down to the same oomt of shares we had in 2006 we have more demand for the same stock, but look at this, the average price of a stock in the s&p was $50 in 2006. today it's $107. what's my point here more demand for the same stock means prices have just gone up i any we need to give buybacks more credit for this i'm going to add buybacks as a major component. these four are the big reasons the market has been moving up. finally we had the santa claus rally successful one other big barometer. first five-day gains, 83% of the time we'll see that happens, but so far year to date, s&p u

. >> not only that, i think brady better get familiar with his >> lets get to bob pisani. >> i am with, i think the eagles are going to win, too >> the inflation trade is back again. here is the key point here, lets look at the major sectors, remember that reflation trade. you buy industrial and semiconductor, and biotech is back again and energy is sort of having the problem elsewhere, president trump talked about public investment of $200 billion of infrastructure, vague on the numbers overall. you saw a mix reaction here. not much going on. it has moved along the rest of the market new reactions today and not much in the way of details. we have been talking about the earnings i would know there is a lot of over seas going on by and large, they have been better than expected they beat on earnings on revenues and their outlook calls for revenues they beat the consensus a the one that's noticeable is h&m, that's a nine year low for h&m, their profits were down they had fewer customers visiting the stores. they got a lot of issues that's the one stand out on the negative side. stock mar

we begin with the market sell-off we're at around session lows, the dow down around 360 points bob pisani is -- with with more. >> just off the lows 2820 was the lows, be we're just above that that's a different story the other major trade, short volatility bet volatility would be going down the vix you showed there that's the highest levels we've seen since august. so long trades we might have the end of the month rebalancing. that's heart to figure out people are way too bullish right now, and peak earnings acceleration sentiment i want to emphasis very importantly is way too high both bank of america merrill lynch and goldman sachs have noted ten years in the case of god mall what that means is they indicators get to extreme levels like they are right now, usually the market will paw. it's just very difficult to advance when people are so bullish. indeed that's what's happening right now. guys, back to you. >> thank you, bob. >>> joining us is chris zach relyi, wells capital management global, chris and kirk, hey, congratulations, you are on "power lunch" on a day when we're seeing the

. >> dallas is hanging on a slight gain lets get to bob pisani >> we got a well known brand here, adts a 105 million shares at $14. midpoint was 18 larce$18 and pr 18 markets at a new high. there is a push back and maybe on the fact of a lot of debt here and maybe some investors pushing back overall here. >> lets see if i can get here. peter, how is it looking at the opening? >> we are looking at the 5 million shares opening it is in the process right now >> i think we'll have some time here in an hour or so. >> thank you, peter. this is a big deal leverage buy out had mixed results overall. last year we had 17 of them and 9 of them pricing below midpo t midpoint what happened was the after market performance was better. the 17 ibos were up by 35% you get a lower price and it opens and performs better. what's happening here at least lower price, we'll see if it performs better. meantime, ibm and mx is shaving about 50 points on the dow we are positive on the dow that's an impressive performance. sector here, once again, every single day semiconductor leads banks have been mixed this w

bob pisani is on the floor of the new york stock exchange. is it rising interest rates starting to hurt stocks? >> yes, for the moment and fears of interest rate hikes. puff reits, on either side of -- and telecom and home building stocks, they're all getting knocked rather noticeably there. also interest-investigate sensitive. like thanks, figure, not doing too much already, but your regionals not really doing that much so the big debate is will higher rates finally be the catalyst for a pullback we have a bunch of market movers, we have the state of the union address, the earnings -- big week for earnings, friday's job reports, but everybody is talking about the fed meeting as the potential mover, because there's concerns about a slightly more hawkish fed. the great news is the numbers for the earnings have been titanic. many companies are beating expectations by wide margins 80%er beating earnings way above 20 percentage points above the normal even the revenues beat on revenues, 82%, the amounts that they're actually beating are much grea

bob pisani is watching all of the markets. hi, bob. >> there's two things that worry me here. first is the ten-year yields i don't usually lead talking about ten-year yields but they are moving up. 252 on monday and they are slowly creeping up that's getting a lot of discussions on various trading the second thing is volatility i don't get terribly worried until the vix hits 20. we've been so low for so long, it's notable we were at high nines in the start of the week and now we're over 12. again, up a bit today. take a look at interest rate sensitive stocks bond yields have been up today utilities are act being normally banks are not. that's interesting i think they are looking top heavy. they had a nice advance and are probably due for a pause here. elsewhere, the basics of the rally are in tact. the cyclical rally that we've been talking about, retailers, materials, consumer discretionary continuing to advance. oil has sold out around that $64 level. elsewhere, remember about this government shutdown. i've been asked does this weakness have anything to do with the governmen

get straight to the access bob pisani, new york stock exchange. >> hello three to one advancing in declining stocks more than 250 new highs. the dow jones industrial average, we passed ignites buying at that point saw etf traffic pick up, hitting 25,500 and the mexican finance minute sister, nafta talks advancing in an orderly monanner. inflation trade. economies expanding around the world arnold see it again today. materials industrials, consumer discretionary, energy and transport, forkelks, ratthat's e reflation trade. and energy names moving up look at the dow laggards consumer staples and health care proctor, mcdonald's, coke, lagging behindpfizer lagging. and delta, positive things yes about tax reform what else they said, outlook for corporate travel spending, the best in three years. that's exactly a reflation trade comment. right now just off the highs of the day. back to you. >> bok, thank you. see you in a bit >>> meantime, higher interest rates becoming the story of the markets this year. there are a lot of questions out there how rates may affect inflation and the fed, not a lot

thank you >> you are welcome >> dow is down 230 you got to go back to last may, lets go back to bob pisanie floor. >> good morning guys, two days in a row is down whach what we are seeing is as defensive tone in the market down the lease are the more defensive names, consumer staples are down a little bit and telecom and utilities are holding up a little better and semiconductor isdown the most of course, healthcare is down a from the jp morgan and berkshire announcement cvs health also is weak and aetna is to the downside some of the hospitals like hca, i would note and tenet healthcare is on the upside. it just turned negative here but hca is on the upside of this we saw some real sales program that goes through the market i want to show you the asia market global markets were under a lot of pressure. we saw the philippines and nikkei and south korea and hang seng the question is is this an end of the month rebalancing because stocks have gone up so much or just concerns of interest rates. that's the debate today. are we at some kind of inflexion point? >> the vel loon the 10-yr, thatc i