caterpillar had a quarter few investors saw coming. the largest heavy-duty equipment maker reported profits that trounced expectations and gave upbeat guidance for the full year. that lifted shares. morgan brennan has more on the big cat's blowout quarter. >> reporter: at four years of sales declines the world's biggest maker of heavy machining snapping its losing streak reporting revenue in 2017 as mining and construction rebounded around the globe. jim you thinkelby saying economic indicators are positive and he expects a strong start to the new year. >> we are expecting to capitalize on sales momentum or quickly adjust should conditions change. we also plan to grow the company by offering expanded services. >> reporter: after years long slumps tied to the collapse of commodity prices sales are picking up across all of caterpillar's major segments. construction, mining are expected to grow this year. just as a restructuring within the company has taken root. analysts say caterpillar is poised to prosper. >> two or three years ago --

. >> meanwhile dow components caterpillar 3m helping to lift the dow. know the cap quarter in and out. some of these bag locklogs are rising faster than they can make the machines >> with general electric we have seen better than we expected the the caterpillar call is starting right,0 now 3m was much better than expected >> is that profit taking a surprise why do you take properties now with expensing, full expensing now on the hoe rrizon? >> such a good question. stocks are up. traders saying the valuation is getting a stretch here we'll have to see what comes out of this call add well. the bar is getting higher and higher to hurdle for some of these industrials like c caterpill caterpillar. >> markets watching the dollar as well. continued weakness mnuchin claritied his comments index trading near the lowest level since 2014 in davos, he said you have to way the pros and cons. >> in the short term where the tlar dollar is is not a concern of mine there's benefits of where the dollar is and there's costs of where the dollar is depend upon which side o

the fact that it was affecting caterpillar struck us. after the earnings call, i asked are you worried about a trade war? referencing these comments? he said we are not worried about a trade war. we spoke about steel tariffs. the fact they are having to address this was massively interesting to us. >> the bigger picture story is it had four years of struggles. falling sales. this global growth came just in time. >> absolutely. when you look at the fundamentals, they are in a good place. they have continued to give revisions higher on their revenue, they have continued to beat on top and bottom lines. we got from them in this latest quarter them saying across the globe we are seeing positive movement, brazil to china. things look good. i think at this point analysts are looking for something that suggests it isn't going higher. that is where we have this expectations game. are they going to surprise us more than we expected or are they going to come in slightly lower? that is the price action we have seen in the stock which has been all o

they have had a nice move, scott, very, very strong moves caterpillar was up 76% last year on top of0% year the yore before. >> jpmorgan knows that they know it and know they missed it but they still suggest that there's a lot more room to run and this is really at the heart of the conversation you're having now. >> you can make a case and i've said it all along, make a case that caterpillar that is $10 to $15 worth of earnings power. >> whoa. >> instead of looking at it at 25 times forward estimates it's at 16 times if you believe the earnings power but you have to have a lot of conviction that the end markets, like mining and oil and gas rim proving. i would say that there's plenty of industrials to still own. fedex still trades at a very reasonable multiple, right emerson is completely underearning i think mayor mar jibs have upside dow/dupont, that has lagged since the third quarter. just last week, i added to that position, not my largest chemical position so i think you pick your spots. >> jimmy, you've been buying honeywell. dan cote just saying i can do even better than my pr

>> meaning caterpillar had good numbers, it was in line -- >> right right, right, right. does that mean the trend is broken >> it's still -- it is not broken but it's how the starts to break i think boeing breaks next. >> when you think about how companies result, this is a company that sells its product years in advance, so we're not likely to get huge surprises things like tax cuts might be a potential benefit. that obviously would already be priced in. people discussed the weaker dollar as a possibility. they are not going to sell more planes because of it it might mean they are priced more competitively that would be forward sales. i don't see how they are going to blow the doors off of already high expectations right now. >> you can repeat this story for so many other stocks in the market right now ones that have had just bottom -- >> we could also google that we started the show with. >> see -- >> netflix, netflix was not that steep. it was only up 40%, 50%. it is the preceding 12 months that makes you that much more at risk if you have eaten tomorrow's lunch, when

growth in revenue for caterpillar here. the best it has seen 2011.ince -- the same goes for 3m. that night percent revenue growth, they haven't seen that since six years ago. in terms ofut eps, operating income, we are talking doubled digit increases. quarterest pace for any since 1993, the last century. growth. people are going to take that. caterpillarg into -- diving into caterpillar. down lines ofand recession, financial crisis, some tepid growth over the early parts, and then in 2016 after donald trump was elected, we see this rise in global growth, and that is pulling ahead caterpillar. in terms of the overall growth for sales, 34% and blue. is higher than that? 50% is asia-pacific revenue growth. since 2011, and that is one reason, and that is the purple and 55%. now to 3m, this is for organic growth. take a look at the right hand side of the screen, you are looking at these or range bars that are popping. this represents asia-pacific growth for 3m. you can see it is almost night and day between 2016 and 2017, pretty

caterpillar levels pretty stretched.ar blowing past the high expectations with the adjusted earnings beating by 37 krentds. revenue growing. broad based recovery after a year's long slump. cod modties, energy, mining equipment all expecting to grow this year. a better than expected profit outlook. global growth has picked up. you've got a dollar that's weakened over the last year. this is just as cat's cost cuts have taken room. the ceo saying in the release, quote, we are in the early stages of implementing our strategy for profitable growth tax reform did result in a 2 president $4 billion charge last quarter but it will be interesting to hear commentary on the call which starts at 11:00 a.m. eastern also from full expensing, which incentivizes other companies to buy equipment. still it's not all rosy. investors looking for an update on the investigation last month, in other business, pled guilty to dumping railcar parts in the ocean to hide unnecessary repairs. overall, whether it's cat or the other big industrials wi

, caterpillar had to shut it down because they were downsizing.amsung has overtaken all other manufacturers here in the u.s., it is the most popular washing machine maker here in this country, and friday at that new plant, the washing machine, the first one, will start rolling off. they're going to double that job number. it's unbelievable, this is a korean company that is hiring thousands and thousands of people, not just in washing machines but elsewhere in high electronics which there is so much here of at ces 2018. let me just say tim baxter is the man in charge of that, the ceo of samsung north america and i talked to him about the opening of this plant and samsung phones and whether they're pulling the same goofy nonsense apple is accused of, slowing down batteries. here's tim baxter of samsung. liz: what should people interpret from the fact you're going to hire 500 people in south carolina. as a korean company, you're creating jobs in the u.s.? >> yes, samsung has a long history in the u.s. we have 20,000 employees in the united states, an

caterpillar, huge exporter. they want a weak caterpillar, e exporter. they want a weak dollar.traditionally he is correct that we have had this big move in the dollar. when the fed starts to raise rates the dollar means to abate. i don't think we going to see a significantly weaker dollar. more of a solidification especially given how much the dollar on a relative basis has gone up since 2011. at the end of the day when you have an improving economy and a more consistent economy in the united states versus europe is going to benefit u.s. companies in general. francine: does the u.s. want a slower dollar? >> i think president trump would be very happy with a weaker dollar. it helps his narrative on helping to improve trade. big dollar at these cycles they tend to last anywhere between six to eight years. pointlly the inflection centered around the lid: than economic ones. we believe the election of president trump marked the top in the dollar. tom: this is the bloomberg dollar index showing what george's talking about which is the recent rollover in the dollar. do we go through

caterpillar 6.5%. going to call this the explosive pays of the rally and you won't give me a hard time, are you? >> no, but i'm going to substitute also the words explosive with a complaisant part of the rally at market pops if you look historically at market tops you usually get big. but it is certainly an explosive rally that it is certainly a time that people who have cash on the sidelines wanted to ploy to take advantage of the momentum. >> we're indeed up 90 points remember please up 200 points yesterday we're up eat 89, 5660 is where we are. explosive rally going to take me on that one john. >> i agree with you and there's no reason that it should end any time soon. we have a good outlook for corporate earnings and tax reform will kick had many and get tax cuts for individuals, and a more favorable treatment of capital -- >> mr. seeker says it is complacency we're all getting carried away that other shoe will drop. >> after years -- >> do you talk to average investor and the average investor at t

caterpillar, caterpillar equipment used for metals in the mining industry.oking at the companies machine sales which have been languishing for several years and have seen a dramatic uptick this year. earnings are out today and the forecast for the year is ahead of estimates. and then you are looking at the shares versus the s&p 500 worried if you look at the shares by themselves you can see the stellar performance, the second-best performer in the dow last year, up some 70% and continuing to record levels this year. but even versus the s&p 500, which we know had a big year as well, we see the stock continuing its run here. so caterpillar shares, continuing even as machinery sales are up. scarlet: moving in the other numeral numeral -- the stock lost 42% the second half of last year. it is changing its strategy. to build itsoking empire products kind of like unilever but now it is talking about selling off several brands. this is a about-face and investors are disappointed. the top line is what is happening today. you can see there is 71 million itshares chan

caterpillar had been howard, now down to present. they beat estimates but they are talking about weakness in china in the second half. investors not liking that. union pacific down 5%, after the company had an earnings miss. also lower on the day, the dollar. let's go into the bloomberg to look at this chart. dollar indexg daily move. more down days than not. down about 4% already this year, down for a fourth day in a row. yesterday, it was steve mnuchin talking down the dollar. today, mario draghi talking up the euro. the dollar on pace for its worst four days since those four days. another start of week is for the dollar, down 9% last year. volatility definitely the word of the day. mario draghi reinstating that morning. , he did notity express any concerns about the level of the euro. what i can tell you, strong euro, weak stock market. the head of the ecb press conference we saw the stoxx 600 rise by a quarter of 1%, but now all 19 industry groups lower, down by about half of 1%. this is a chart showing you how strong euro stoxx

one of the big names to report its caterpillar.numbers could be strong and an indicator of global economic growth. we will have the numbers when they come out. back in a moment. with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. . . sometimes, they just drop in. obvious. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group - how the world advances. ♪ >> here again is maria bartiromo with the special edition of mornings with maria live from davos, switzerland at the world economic forum. maria: welcome back, everybody, good thursday morning, i'm maria bartiromo, live from davos, january 25th, top stories right now 6:30 a.m. on the east coast. president trump has arrived in davos amid booming u.s. economy. i spoke with treasury secretary steven mnuchin a few minutes ago about the trip. >> this is all about american jobs,

caterpillar is down over three bucks that having some impact on the dow industrials because 3m and caterpillars. come in gary kaltbaum, of kaltbaum capital management. all right, gary, you have seen all the profits reports we're seeing so far. are they good enough to justify another leg up for the stock market? >> not sure. you have to realize something, stuart. we're up 8,000 dow points in 15 months. that is good enough for about five or six years of gains. so we'll see. caterpillar's sales growth last four quarters went from 4% to 35%. so the numbers are darn good. the question is, has the market factored it in? remember caterpillar sup 50 to 60% in the last year. maybe too far too fast. but the market still in good stead. i'm noticing housing stocks may be topping today. overall the market is in good shape, notwithstanding pullbacks that happen anytime. stuart: thanks so much, gary. listen to this about netflix. we'll put it on the screen in a second. netflix is at all-time high. it is $261 per share, as we speak. that is awfully high. would you buy it at 261? >> i think pullbacks you can b

. >>> and caterpillar was the second best dow stock of 2017. cal up about 70% now it just got an important upgrade. e 's up nearly 3% today. sewhy when the "closing bell" comes back in two. we recently had a heart attack. but we are not victims. we are survivors. we are survivors. we are survivors. and now we take brilinta. for people who've been hospitalized for a heart attack. we take brilinta with a baby aspirin. no more than one hundred milligrams... ...as it affects how well brilinta works. brilinta helps keep platelets from sticking together and forming a clot. in a clinical study brilinta worked better than plavix®. brilinta reduced the chance of another heart attack. or dying from one. don't stop taking brilinta without talking to your doctor,... ...since stopping it too soon increases your risk of clots in your stent,... ...heart attack, stroke, and even death. brilinta may cause bruising or bleeding more easily,... ...or serious, sometimes fatal bleeding. don't take brilinta if you have bleeding, like stomach ulcers,... ...a history o

big moves in 3m, deer, caterpillar and boeing. analysts say stocks are getting pricey but profits are catching up. >> we like the valuish names. stocks haven't gone up much at all. g, he. we like emerson, like itt, rex narcotic. >> earnings season isn't overyet. next week, boeing, lockheed martin, semens and others also add to the sector's story. >>> investors in wynn resorts take money off the table on a report alleging sexual misconduct by founder steeve wynn. that is where we gwynn tonight's focus. the "wall street journal" reported that former employees reported they had been sexually harassed over a number of years by wynn. it was reported he had paid several settlements to a manicurity. abvy said a favorable tax right and robust sales of its athlete transmit prompted the company to raise profit estimates for 2018. the new guidance came after abvy reported earnings and sales that rose more than expected. shares rose 1% to 123.21. and colgate pal model i have said weaker sales and increased pack anging costs cut into mother-in

unitedhealth group, caterpillar, 3m, and home improvement retailer h if you add these up, you'll see that just about half of the dow's gains between 20,000 and 25,000 were just these five stocks alone. it's not all positive. some of the names didn't do all that well. check out some of these. pharmaceutical giant merck has dragged the dow down during that timespan. general electr is not a big high priced stock anymore but it dragged 82 poi dow's performance. big blue, ibm. as we talk about the march for the next leg higher in the dow jones in average, we'll talking about whether or not e stocks can turn around or whether the momentum in shares like boeing, home depot and others can maintain that upside. for "nightly business r i'm dominic chu. >>> to the economy, where u.s. employers created 250,000 jobs last month, much more than expected. it i the latest report pointing to strength in the economy. and as steve liesman tells us, it's the economy that's playing an important role in the stock >> reporter: some stock market surges take flight on the hot air of just hopes and dreams. but

. >> look, caterpillar was fine, texas instruments was fine the reaction is -- the news.e saw the news so that was a little uneasiness. >> why is that was there anything -- was it just -- were expectations too high was it just reflecting the market backdrop? >> all of them are up huge all of those - >> the dow was up 3,000 points since thanksgiving. >> led by technology and industrials. so, i get that look, union pacific, that wasn't fine there were some issues there i'll give you that, down 5% for the day. probably should have been. under the surface there was a lot more concern and just wondering what was going on as opposed to this triple-digit rally. >> we saw in the first week of earnings, a little beat and all this excitement and momentum behind it. quickly on the transports, union pacific, as stephanie mentioned, was down 5%. some airlines didn't look so hot after earnings jetblue, for example, following the action we saw there yesterday. what do you think the message is here >> first of all, i think what mike said is a really great point. people have to remember t

caterpillar. now, you talk about the growth, but caterpillar right now, do you really want to pay for it? we'll talk about netflix in the blitz. barclay is recommending it now, i don't know on what metrics i think we're getting a little head of ourselves. on some it's tougher to find value which is why i believe if you want to play some of the etfs you don't have to take that single stock risk. if they disappoint, there is no parachute or resting place below. >> you know what stock almost epitomizes this market and where we are now, it's one we don't talk about all that often and it's delta airlines. you were fairly negative on the airlines last week. >> yeah, missed it. >> and delta comes out and raises their outlook and "the wall street journal" has a story on how the airlines are a prime beneficiary, if not the biggest from the tax plan. we're already getting a view on what the tax plan means. people are underestimating what it's going to do to earnings. >> so i did buy delta. i sold united, ha

market dragged lower by shares of caterpillar, chevron and apple. nicole pettalides on the floor of the new york stock exchange. nicole, talk to me about the selloff. >> you can't have up days and records every single day. the big picture here we are seeing some selling across the board. just about every sector was to the downside except for one small sector in the consumer area. so the selling was broad based. big losers energy, utility, telecoms were among the big laggards. stocks sold off as bond yields moved higher. they have the inverse relationship. the dow moved to the low of the day. there was some accelerated selling going into the closing bell. not great for the bulls. obviously that is not what we want to see when trying to move to the upside. look at the treasury yields you see the 10-year bond moving to 2.7%, above that level. that has been crucial. the vix, the fear index also accelerated into the end of the day. had been about 13%. it moved higher throughout the day. it was 22% to the upside. there it is, 23%. closing at 1363. this is

it checks every box. >> cash flow, momentum how about caterpillar today? >> the poster child for synchronized growth. >> where is it now >> forget about where it is today, who cares about that? the point is on the conference call they're talking about latin america and europe being good. they're raising the guidance you're seeing mining is actually good once again. it's the poster child for -- >> let's change the discussion sleig sleig slightly let's talk about what could go wrong. that's a valid conversation. >> no one knows what could go wrong. >> i'm going to throw two things in out there they're not near term. one is inflation if you see inflation, you hinted at this a second ago, rob, if you see inflation, that could cause multiples to come down guess what, it's just not there. we went from 1.9 to 2.1. i'm not scared of inflation. you know what will be fun, though, this summer, not right now, this summer, when the election cycle is in full gear and everybody is slamming on over the and people are worried about houses of congress changing party control

one year so it pays to buy caterpillar equipment.here's a change in the law that directly benefits them let's accept the fact that the law changed and it was positive. i think that's really important. >> i've got a couple of stories regarding apple today. two major apple investors calling out the company saying it must take a stronger stance on the mental health effects of excessive smartphone use, especially in children and teenagers. jana partners control nearly $2 billion in combined stock and in an open letter the company under the headline think differently about your kids, companies say apple can play a defining role in signaling to the industry that paying special attention to the health and development of the next generation is good business and right thing to do shares under some selling pressure in the premarket. there's a lot of other headlines affecting the company. some involving users of the echo, using their smart phone less, surveys like that. >> interesting things for a number of different things, social impact inves

caterpillar.t's a pretty good lead indicator about where the economy thinks it's going to go where the nation is going and home depot again, home depot is doing well what does that tell you? it tells you that people are going and investing in their own homes in their backyards. liz: let's ask all of the people at comcast and msnbc, do you know what are you giving your bonus back? should comcast not reinvest? >> you can always give it back to the government. call me i'll make some arrangement. liz: who cares. look at this even after all this good economic news and proof companies are spreading the wealth creating jobs and investing in the states they're located in look at this action democrat new york governor andrew cuomo is deciding to sue over the federal tax cuts listen to his logic here. >> washington has launched an all out direct attack on new york state's economic future. it is ugly and ledge us lating and economic civil war. we believe it is illegal and we will challenge it in court as unc

what about caterpillar speaking of stocks that are hot. josh >> if everything that we're talking about on the desk today about rising commodities, rising yields, faster growth, cyclical coming into favor, if all of that is the real thing, then this should be the type of stock that almost regardless of what the earnings call is, unless it is a disaster, leads to a rally. that is what has been recent history for companies in this space. caterpillar is a better example so hopefully you get that follow through if you are heavy into the industrials. i'm personally not. >> and you tom -- you are into the industrials. >> it is in the industrials. >> cat would be in my top five of indications of you'-- euphor. every talk with an investor, cat comes up the stock should not be where it is a momentum play but go back to their earning history. and it is a new ceo, thankfully, but the value is crazy. >> it is priced for perfection this is just specific to cat, not the market overall and it won't lead the market down but if they have a slight crack, cat

you are looking at caterpillar, the best performer.to propel momentum further? scott: i really do. expectations, julie, our lofty. the stock has been a juggernaut. as i said, expectations are lofty. as one dollar 88 cents per share. what is really, in my opinion, here,to drive caterpillar not only the effects of the new tax reform, but also the new infrastructure plan that is in place. caterpillar is in a good place to take full advantage. julie: if, indeed, it does happen. do you think we could see that bouncing around as it unfolds? what is your trade looking like to capitalize on it? looking for great metrics and, most importantly, future earnings growth. based on the options market, predicting $7.50 move. i'm buying february regular a 172.5 to 177.5 call spread. playing for that upside move. by using regular february expiration options, i'm getting my so some time as opposed to that's this week. that's what i'm looking for here. will seel right, we what those numbers look like tomorrow. scott bauer, good to see you. scarlet: stocks

just to give itself some breathing room thursday morning caterpillar reports, here is another company that put up extraordinary numbers, ala netflix dollar repatriation tax holiday and the booming global economy i am praying it sells off on an inline number so you can buy it into weakness. i think ceo will put to rest the notion that somehow his chips are so flawed that we need to fear use i like the stock very much we hear from starbucks with a stock that is once again trading above 60 i am telling you its stock will finally learn its premium stock luster reporting and i think you will get some information about the new honeywell, or two new honeywell will look after the break up i have been recommending this stock for ages i suggest buying part of your position before the quarter but leave powder dry here is one for you. it is what i call quizzical. pal mole live. the consumer product good is out of favor the numbers decent but not incredible could colgate be up for sale is kraft heinz interested in it wouldn't shock me if we find out on friday that something else is going on beside

. >>> and caterpillar with a big earnings beat today. equipment banker build on its success in '18? we'll ask one of the top analysts on the street >> plus, dallas mayor mike rawlings on why amazon should think big when it picks the location of their second headquarters i think he must think dallas is big. wants that company there why wouldn't he? all that and much more on "power lunch. and energy to fuel its growth. real estate such as e-commerce warehouses. and private debt to finance transportation and infrastructure. building blocks of strategies to pursue consistent returns over time from over one hundred fifty billion dollars in real assets. partner with pgim. the global investment management businesses of prudential. >>> it is a bit of a volatile trading day, but the rally is back on. the dow hitting new highs. here is a kind of staggering statistic. exactly one year ago, exactly a year ago, the dow closed at 20,000 for the first time. we have gained, as you can see there, more than 6,000 points since then how much higher can this

caterpillar shares are rising upgradeder jpmorgan the stock.eform will help with shares. joining us is taylor riggs. taylor: another thing analysts were shareholders are thinking. when we think about caterpillar, one of the reasons jpmorgan itraded the stock was how can extend the business cycle and extend the free cash flow. beencash flows have not doing well recently, but this year, amid the forecast for 2018, it will really boost that. you can see it is going from $3.9 billion again to $4.8 billion. so it is really good. we are also, when you look at the different segments, they upgraded the stock to $200 a share from $144 a share, in because of their resource business. they say that right now it makes up about 15% of the company's overall revenue, and it has been declining. so they can start to jet that up. it is in the two-year of what can be a 10-year cycle. that would really help them. shery: at what level would we think they are overvalued? taylor: i am a little technical, so i love doing the free cash flow, but you cannot always ignore

caterpillar and 3m report before the opening bell after the close, we'll hear from intel and starbucksounced plans to increase salaries for people after this tax plan we are in the green once again dow looks like it would open up about 66 points higher nasdaq looking to open 30 points higher s&p 500 up about 7.5 points. >> finally, you like the tax plan, because howard schultz -- >> it's not that i like the tax plan because howard schultz -- i'm acknowledging that i may have been wrong -- >> virtue -- >> i may have been wrong about my early cynicism about companies that came out early on with these one-time bonuses. >> when howard does it -- when howard -- >> are you suggesting that he is trying to curry favor with the administration >> no. no i'm saying once your progress e ive demigod does it -- >> no, bob iger did it the day before >> when he raises the prices of latte to $8, isn't that just another ceo you don't like >> i like everybody. i want our economy to succeed. >> also on -- we were talking about the squawk planner i'll speak with president trump about his message to davos a

would be, i don't know, 16 months from now we've seen buying like this in all kinds of stocks, caterpillarwalmart walmart's part of a one-two punch pattern. that's where it announces big pay raises, and now according to a crucial update by goldman sac sachs. i think yesterday's announcement might save them another huge buy-back it authorization. a little profit taking after hours but that was off a company we are going to talk about later in the show. i'm sure some of you are thinking, cramer, you come up with anything positive to say about anything negative. isn't this indicative of wild, desperate buying, classic blow-off-top you know, i might have at another time said that wait a second. it's about the shortage of stock. so many shares of companies have been retired so many are owning, no longer renting their stocks those of you who trade stocks in hundreds or thousands of shares will never have to worry about this but if you're buying in blocks of 100,000 shares, any meaningful purchase is going to leave huge footprints. for those of you who say nope, i'm not going to play this game, i

. >> moving on caterpillar shares a hitting a record high.irm citing strong earns, to drive the stock higher this year first of all, good for jpmorgan. they upgraded the stock. why after this move? the bottom line here is the top four reasons is extension of the -- this means it was going about 2017 >> when in fact what has changed, is the tax code what these guys can throw in, with new and used equipment. but a lot of the resource names. it started mid-2016. we saw recovery in ag, and yet here we are getting it now >> i get the from you trace, but they do make an interesting note, in that caterpillar, and all the other names, year two of a ten-year resources cycle, which actually means there's a long trajectory for a lot of these stocks as well >> i totally understand what tim is talking about they're so late, and i know you do, i can tell by your tone, but that doesn't mean it still doesn't go up, because of the fact this thing has plenty of room to run. what do they all mention in their note was it priced in >> apparently it was -- >>> sti

think big companies like caterpillar. do really well, because they will need construction material to improve roads and infrastructure in the us. this is supported by the recent tax support built which benefits big corporations. american airlines said they would give employees a $1000 bonus thanks to the bill. southwest said a donated $5 billion to charitable companies, organisations. sales of cars are likely to pass 90 million for the first time since 2017. asian buyers were a quarter of sales. demand for trucks remains strong. 0f sales. demand for trucks remains strong. of course, they are not as sexy as this. driverless cars. what a beauty. a few years ago, they seemed like the stuff of science fiction. not any more. there are plenty of different concepts out there. our reporter roadtested one which has just been launched by a french manufacturer, renault. now, if you have never done this before, it really does feel quite strange. we are doing 115 kilometres per hour on the motorway, and i am not touching anything. i h

next up is the most heavily shorted stock in the dow caterpillar which proved wrong with a staggering 70% gain. it is another stock that transformed. not long ago it was a total bust. so the correlation isn't that strong. these days what matters is the strength of the business here in the u.s. and how much more efficient cat has become with both manufacturing processes and maybe even more important the one-time unruly dealer network that they didn't control. that means the company has much less risk of making machinery because it has a much better handle on the whole food chain. right now things are booming. in this boom the company is making a heck of a lot more money off of earth movers. now it is fairly pristine. sure the company has been hurt by untimely purchase of coal maker. the shorts have been crushed. i don't think cat has become a secular growth story. just as commodities like copper and oil are at their highs or climbing while the southeast is experiencing a manufacturing renaissance that needs all the cat machines it can get. i doubt it can repeat the performance. with pr

but caterpillar has great business everywhere.hen you dig a ditch to have a pi pipelines, nice upgrades to pipelines today, you need caterpillar to do sme sort of construction i come back and say it's a worldwide company. same thing with deere. worldwide company. these companies are doing fabulous. >> we have record highs this morning on the nasdaq dow and s&p. earlier this morning jim you mentioned usg and multiple upgrades as people are going to need drywall in some parts -- >> a lot of people don't know they need drywall. i have a friend who is a drywall guy, haley, i mean, these are halcion times, once you get mold in there, you have to rip everything out and you'll run out -- u.s. chip, registered trademark, sheetrock what a business one of the most interesting companies up today is zylinks, retires and goldman goes hold, not just to buy, but to conviction buy what the heck is going on there, communication stabilization. i thought that was the single most important upgrade today amazing upgrade. cisco is catching up when you

caterpillar and visa were top boosts for the dow in 2017 as well.they're just carrying on into the new year. >>> mcdonald's top boost for the dow after getting a price target boost from nomura to 190 bucks from 180 bucks. mcdonald's stands at 173 per share. we're keeping an eye on oil prices. slightly lower, still hanging in there, $60.32 a barrel. we have unrest in iran and on going issues in venezuela. changes afoot in saudi arabia. opec trying to keep their production costs in check. all of this is putting some upward pressure on oil. right now pretty much stalled out at 60 bucks. >>> back to retail, a flood of store closes about to hit the u.s. in the new year. estimated 12,000 stores will close this year. that is up from 9,000 last year. bert flickenger, strategic resource group managing director joins us right now. he is mr. retail. bert, you have been right every step of the way. talk about winners and losers you see in retail. begin with the winners. >> winners, walmart, tiffany, tractor supply, tjx and other lower priced players. heroic eff

if you want to buy 50,000 shares of caterpillar, you don't pick them all up at once.what happens if it goes down immediately? you feel like a dope never buy all at once. instead, i should have been buying cat in increments of 5,000 shares i know it sounds measly if you're a professional, but believe me, i'm right. you can hope it goes down so you can buy more at lower levels and get a better cost bases. i know the institutional guys are saying, jim, 50,000's nothing. but you know what? i know longer trade in size as we'd say, but i invest and whenever we have a new name to tell club members, we buy it in mall increments, say 500 shares at a time or smaller, over the course of multiple days when you buy all at once you are declaring that the stock won't go absolutely lower, don't you think that's crazy no one has that kind of insight. judgment is infallible why don't investors if they want 500 shares in exxonmobil buy it in increments? they want it to be big too they don't want to waste the broker's time. the broker wants to get the trade done they would hedge when i'm

nothing sexy, just good old-fashioned stalwarts, caterpillar, chevron and boeing. since we hit 24,000 until today, chevron better by 7 1/2, boeing up 7%. hope you own those stocks. >>> a few hours ago we got this out of president in d.c. he said, quote, i guess our new dow number is 30,000. to the floor show and traders warm and cozy on the nyse and the cme. keith, he could be right, is he tempting fate here as we are about to mark the 7th thousand-point gain. >> the dow's run over the last few years, not just the last month, for sure. given what we look at and view inside of the markets. given what we see in the technical indicators that we look at, and given what we now know is the fundamental backdrop to the earnings picture and what's going on in the economy, we really don't see any reason why we stop at 25,000. we may take a pause here and, there but no overhead resistance inside of this market, primarily because we keep hitting new highs and redrawing the charts every day, but no reason for it to stop. the dow is a price weighted index, which means the higher

caterpillar by far the most positive, up 0.7%. much everything is down i'm going to quickly look at the ten-year as well 2.73% rising yields is one of the factors seen for why markets have been spooked. the dollar, though, not really reacting to yields over the last couple of days it was up a little bit yesterday. down a little bit today. the correlation with this selloff, not playing into the factor the way yields has been bob? >> i agree with that completely. dollar is not a big factor today. here's what's important. the good news is we hit the lows early on, about 10:30. 2800 on the s&p. we moved in a narrow range we're just off the lows but we didn't fall much further than that two observations the volume, it's not is that great. it's only a little bit above normal now, that tells me there is no panic selling going on number two is the vix. we'll talk about this on the other side the vix is elevated but there's not a level that would indicate panic to me. i'm not trying say it's an ugly day. it is. that reflation trade we keep

now, there's something else going on here, too, that we must talk about caterpillar and united technologies are the kind of industrials that benefit from a strong economy so with this highly unusual period of simultaneous worldwide acceleration, money managers are jumping all over themselves to get exposure to stocks like this funny thing, though, there simply aren't enough of this kind of stock go-to-to go around not only do we have a general shortage, we have a very specific shortage of the manufacturing cyclicals that are most in demand right now these smokestack companies are always gobbling up other businesses in their own industries, exacerbating that stock shortage finally there is the simple recognition that some companies are doing very well. much better than we thought. other companies are being re-evaluated as businesses that deserve a higher valuation because of what they're making, what they do cases in point, just look at tesla. last week, tesla, the auto company, reported very disappointing earnings very disappointing i mean, not even within the ballpark [ boos ] now the stoc

and 3m both of which actually had their quarterly reports, caterpillar reported loss in the quarter,arnings did top analysts estimates. then there's 3m which actually hit a new high, the maker of scotch tape and bandages, post-it notes. they raised forecast. that's a real winner. ultimately, we digested a few pieces of information such as home sales, home sales dropped, why was that? because people had more in the labor market, they are doing better with the jobs, ant wasn't the supply, that's the big picture on the market overall. we have come back, some people are really just taking money off the table and extensive conversation with one trader having the best month of his career and he's selling, he's just saying, i don't want to lose it, some people are right near the top and feeling great. trish: nicole, thank you very much. u.s. crude calls 1.65 a barrel. our own jeff flock. jeff: there had been a surge, part of the run huff upmost recent yesterday at least had been talking about a weak dollar which obviously is bullish for oil, now we are in the after hours farther than we wer

caterpillar, chevron, all of these stocks rallying. in fact boeing and caterpillar are responsible, you were talking about that 1000 point milestone, responsible for half of the dow's rally since dow 25-k. also chevron, look at this gain today, and for the week. you have to remember oil prices up four weeks in a row as well. not just dow components. tech stocks as well. first time all year, apple, which is a member of the dow hit an all-time high. google, microsoft, netflix, amazon. left out of the mix is facebook. those shares down pretty sharply, basically overhauling the news feed which is good if you want to feel warm and fuzzy, get updates from family and friends. not so good if you're advertiser, publication or a brand. david, melissa. david: i want facebook to make me rich. not to make me warm and fuzz did i h sy. -- fuzzy. that is the problem with facebook today. >>> bring in today's panel. jack hough from "barron's." heather zumarriaga. it does not care what is happening in politics, does it? >> it does not. cyclicals, industr

each operates in a duopoly caterpillar with komatsu, and -- obviously, you can see the spread maybe it's earned and desired. let's go to a ten-year chart you can see the spread correlation. and now this epic run. let's pull it back even further. this is going back to 1980 all data september of 1980. s&p, and what's happened of late granted this is arithmetic let's look at a log chart to try to put this in coneck the. it's the same chart going back to 1980 but i've done it non-linear to try to put in context the preceding prices relative to current price. here's what catches my eye if i put in a channel -- i didn't manipulate this what we know precisely is the 1980 recession close if reagan, the 1999 high, the 2007 high, the '09 low, and for the first time we've actually blown through the top of that channel. my hunch is that we are going to fall back in at the minute to the channel. how far are we this is, again, those two securities plotted equal weight. typically you will get a check back towards your 150 moving average. that's my bet. that would apply about a 10 to 15% selloff here an

boeing, merck, caterpillar and united tech.ing) (barry murrey) when you have a really traumatic injury, we have a short amount of time to get our patient to the hospital with good results. we call that the golden hour. evaluating patients remotely is where i think we have a potential to make a difference. (barry murrey) we would save a lot of lives if we could bring the doctor to the patient. verizon is racing to build the first and most powerful 5g network that will enable things like precision robotic surgery from thousands of miles away. as we get faster wireless connections, it'll be possible to be able to operate on a patient in a way that was just not possible before. when i move my hand, the robot on the other side will mimic the movement, with almost no delay. who knew a scalpel could work thousands of miles away? ♪ >>> good morning once again, everyone here's your cnbc news update nato saying the campaign against isis is changing from combat to stabilization. allies gathering for their first meeting of the year to anno

. >> what are you going to tell somebody to do with a beg or caterpillar. some of these huge winners >> they are overvalued under historic measures. however, where are you going to put money if you're not putting it into the market and equities? >> judge, we saw a couple of really big trades come in today in tech. i'll talk about one on unusual activity, but they came in, and they were people thinking exactly what you're saying they were worried saying, you know, i feel a little like jim cramer i really don't want to put more money in right here, but i've got a big holding in this tech stock. i'll sell these out of the money calls and i'm selling out of money puts $10 above where the stock is, $10 below where the stock is i'm taking in a ton of money on that trade, and if vol doesn't go higher, i keep all of it anyway, and if the stock doesn't violate either end, $10 higher or $10 lower, which would be a reach anyway, this guy is going or gal is going to bank a lot of money on that trade. i've seen that pouring into several stocks today in particular in the

. >> thank you >>> time for trading nation, and today, we trade caterpillar.o report earnings before the bell tomorrow. stocks on a huge run in the past year buy into the earnings? michael with the group at high tower advisers, and matt, you know, if a year and a half ago, they said, you know, matt, caterpillar is up 77%, you'd said they were drinking. nobody has said that, nobody thought it incredible run is there any way you think it can continue >> it's going to be very difficult, and it's nothing to do with the fundamentals when the stocks had a great run, but it's gone vertical in two months it's not a technology stock, but looking at the chart, it's rsi, relative strength index, it's above 90 it's out of control. never seen anything like it. all-time high by a long way. it's an 8% premium 200 week moving average something reached one other time in the past. again, purely a near term basis. fundamentals look good, infrastructure bill could pass, that's positive as well, but the sto stock could pull back 10% and it's still up. that would be natural, health

climbing skills are also part of the bio because heritage in the forest canopy they find honey and caterpillars which they can harvest time and again without chopping down the trees. but for these teenagers it's not just about protecting the environment. but no no. no you can't climb a tree and with the road you won't get a woman. if you can climb up to the top. you can get a young women from the village. on monday morning yes this is the man is saying he wants something if he can climb a tree. i couldn't love a man who couldn't do it. but it's also fun and make steam akali more attractive to young people. who are really oh. forest ends with traditional dances. symbolically transformed into the spirit of the woods they don't suppose. which was traditionally performs the evening before a hunt. but these young people aren't going hunting. they're heading back to their homes. and once they've left the spirits of the forest returns to the quiet green space beneath the trees. so there's plenty of people doing that beautiful environment all over africa and in europe but that's all we have time for to

caterpillar driving that. the opening bell is a good sign for the economy, the markets because it shows that a company feels good enough to go public. gates industrial corporation. transmission and industrial equipment business. it does have an office in pinole. so a little bay area connection there. checking in on the latest numbers. they're all still up across the board. look at the dow jones up half of a percent now. 167 points. the nasdaq at 2844. it is up more than a quarter of a percent. >>> apple plans to give owners of older iphones more control over the speed of the phone. the major update will include an option that allows owners to turn off a feature that slows the device to keep aging batteries from shutting downment many were upset when apple admitted that it had been slowing down older phones. apple issued an apology but faces investigations and a number of lawsuits. >>> there is good news for airline passengers that are worried about getting stranded by bad weather and computer programs. delta a

caterpillar, which is struggling mightily for the past several years and is not necessarily a companyput in the category of innovation >> well, that's because people don't understand to run heavy equipment, regardless of what the heavy equipment is requires an enormous amount of precision technology if you look at technologies like fuel injection where they play with bosch or technologies like hydraulics and automated systems, when we're thag with i anumber of companies in the supply chain inventory management longshore other kinds of heavy industry technologies, a lot of where caterpillar has got opportunity in their ini don't he vegas space is to play right across an enormous range if you look at the particular one of the interesting things we like to look at is the way in which the technologies that kept dirt out of fuel lines in the caterpillar equipment is now being used in uav's and other very precise instruments what you are going to see is caterpillar deploying its technology across a broader range. we need to think of them not just as the heavy equipment company. we need to t