that was a buying opportunity as honeywell surged higher. all of the industrials are up today. a lot of it is davos a lot of it is the president i am pretty convinced that the one area i was interested about in slowing personal computer sales didn't pan out the rate of the decline is petering out and that is all that matters this relative improvement along with the strength of the data business allowed intel to strive microsoft wins with the pc and the data center. booming as your cloud business i expect a monster quarter facebook is a different story. get this, i think the social media tighten will put the estimates to shame and that is all that you are going to get that is good i expect management will trash their own stock by talking down revenues and talking up expenses and that will spook people facebook will open the selling window for their shareholders who work at the company and see some first class stock dumping from their top executives. even if the numbers are as fabulous as i am anticipating, the action is going to be mig nightmare. get a lot of thursday. alibaba a

take honeywell which beat estimates and raised guidance. the maker of jet engines and thermostats is welcoming demand across its segments. and despite a nearly $3 billion tax related charge last quarter it's betting reform will boost business even further. >> i think it's going to be good for u.s. business. for us, we certainly see a much greater level of bullishness on the part of our customers which should translate into continued investment. you are right, their cap ex is our revenue and we expect some level of investment to accelerate. >> it is raising the match for its employees and plans to bring most of its overseas cash back home of the it isn't alone, caterpillar, 3m and united technologies all posted strong results this week raising guidance and unveiling capital spending plans. some companies are prefunding pensions and others are on the prowl mergers. experts say growth is across the board as even hard hit companies like business yet is on the klein. >> real people are spending money in the industrial world and i think it's goin

you could see ge revisit some strategic combination with honeywell as it restructures.ber, one of the last things that jack welch tries to do as ceo in 2001, as he named jeff immelt his successor is merge ge, essentially buy honeywell. scuttled by the european regulators and the company never recuperated from that. it was really a negative mark on the company and ran into other issues and mainly 9/11, and then the real questions about the ge conglomerate has been haunting whether that's a proper business model has been haunting jeff immelt ever since. i hear that there is talk internally about revisiting a joint venture with honeywell since both of them have slimmed down and plenty of synergies if you merge them on the aircraft marving side. that's the stuff that's going on. they're talking radical changes. we're talking about ending ge, one of the biggest companies in the dow, as we know it. we're talk about something -- liz: the original dow members. >> something that jack welch built could be in the middle of being dismantled and only hedge myself here anything is po

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 besides earnings. this is a quandary why colgate palmolive stock is so high. you need to take it company by company because if you only look at the averages, you might be attempted to think that has too high i think some of them will turn out to be specific buys. and tell a much more bullish story about the future let's go to miles in louisiana >> caller: i want to give you a big eagles booyah. >> thank you. >> caller: thanks for all the help you do. i want to get your thoughts on ale marle. >> pulled back because of that and theme story

honeywell leveled with double numbers. the estimates on revenue. down better than 3%.rkets higher. there up to 50 points. in the index is up a fraction. markets closed mostly higher with the exception of japan. the best performer up one and half percent. if at first you do not succeed try, try again. they are growing tired of the nfl's action. bill gates is serving up a new career. he prepares to team up with tennis legend roger federal. first of the top story this half hour. at present trump is set to address in the world economic forum here. joining me right now as the wall street journal executive editor. what are you expecting from the president this morning. it sounds like he is going to give a variant of america first. we expect to be treated fairly but that does not mean that we are anti- trade or anti- global nest. i think he will give a little something to everybody. it seems like he will also going to take a victory lap for the american economy and say we are great place to invest. we want your business. were bringing america back. that kind of stuff. a numbe

there's some honeywell, johnson controls, rockwell automation, initiated buy?> there's a lot i like. >> i own emerson, which is a bye. i think you want to be a little more stock specific in this space. >> let's put them back up for everybody to see and talk us through this which one specifically >> i like emerson because it's lagged and it's a closet oil and gas play margins continue to be depressed so there's upside there. so i also think there are tax beneficiary, a nice dividend yield and i'm looking for the lag. so i own black and decker, but i've been trimming i think the quarter is going to be great tomorrow. maybe the guidance is a little conservative >> that's a special spags. but rockwell is a buy from this analyst as well. and rockwell and emerson are similar in terms of their end markets. >> i went to the charts on this one. and the three best, this is a stock that really has spent the last couple months working off overbought conditions. now looks like it's ready for the next leg higher. rockwell automation, a nasty candle in late october i'm assumi

for a long time, if ge isn't able to perform in this environment as a stock when a company like honeywells absolutely crushing, then in what environment will they i think the pains in this stock is to the downside. >> 11.50 is the target we put on it given that we ascribe certain debt like aspects to the company, it's broken up. >> how your analysts, god bless them. how can you do a sum of all the parts on this aset i haven't gone through the report he's a smart guy but people are pricing the assets at basically liquidation levels look what happened in the energy market in the power utility market we have had a major recovery you have got to tell me that ge capital isn't in a better place than it was six months ago. >> the way they priced sit above the market cap right now >> right. >> right now you are talking about a praem yum to market cap. >> do you short this thing >> i don't short the stock i think you can use it as an alternative short. but i would say there is no reason to buy the stock? from one buzz kill to another. >> as legalization of marijuana he can pants pot businesses are

america's leadership in aerospace unchallenged boeing obvious honeywell charitable trust united tech. i am talking ten-year cycle. what is interesting and frankly sad to note is if you look at the two cohorts, the natural investment will be general electric throw in their health care business three areas that are enfuego ge a handful of companies with balance sheet too -- that were irresponsible, you get the picture. someone should have stopped t-- they need more money dividends too big. sell more assets given the strength in oil service, you think ge could be the greatest stock on earth, but this company cannot be given the benefit of the doubt yet because we don't know about its balance sheet. i count 3 stock in the s&p 500 that had balance sheet there is an endless game of leapfrog in the defense sector, raytheon, lockheed martin. round and round she goes finally, there is a cohort -- it is adp, remember i told you that combination is great man power, stocks go hand in hand with an economic expansion which is why they will not quit. if you own a stock that is not covered by one of

&and johnson and honeywell.nd johnson and honeywell.d johnson and honeywell. johnson and honeywell. we've been giving them expertise on how to cite micro grids on the island. and to encourage them to stay on the island and further expand their employment opportunities for the people in puerto rico. >> several members have commented that about the quality of the witnesses that we've had this morning and the discussion. one of the benefits of holding the gavel here is i get to stay for the whole morning. it has been as important and i think enlightening in certain areas. as any hearing we've had in a while. thank you for that. i hear from most of you that we are beyond the discussion about base load power and how we define it. and i forget which of you referred to the policy conundrum between diversity verus security. we need the diverse portfolio but if the diversity doesn't give you the security of access, you fail when it comes to your resiliency. you fail in terms of your ability to really meet the expectation there and so i think it's important that as we -- as we talk about thes

you know what, may i suggest that people look at united technologies and honeywell remember when honeywell- >> yes. >> moved on. said never and everybody won. >> qualcomm, the ee quiquivalenf qualcomm won i think he'll listen. >> news on the nxp deal. -- >> what price? they got approval? >> yes, from korea and from the korean fair trade and the european commission. so korea fair trade commission and european commission authorized qualcomm's deal to acquire nxp. they still have to wait on china. the shareholders at nxp, jim, they are saying now i'm hearing some of them say 125 was the number we would have accepted but now with nxp's peer up 6% this year with the stocks up around 6%, just a solid start to the year it's not 125 anymore, it's higher. >> the qualcomm people, they are a little cagey what they are willing to go up. >> as they should be they only can talk about it when they get china when you'll get the final negotiation on nxp but they did bring up this idea of buying back an enormous amount of stock to equate the accretion they would get from the nxp deal. >> even though strateg

. >> ain't going to happen honeywell also benefit here too?say that honeywell is splitting, it's much more in the camp of what you're going to get -- >> not splitting the main parts, they are -- >> aerospace is so strong. incredibly strong. >> i like the way you move since you come back. >> thank you. >> we have opening bell a few minutes from now we'll keep an eye on other moves the stocks will be making after this mom and dad got a new car... with the extra third row of seats. they think it's theirs. look at them, they have no idea! it's not theirs. it's mine. mine. mine. mine. the new lexus rx 350l with three rows for seven passengers. are you excited about your baby sister coming? experience space for the unexpected with the rx l, part of the rx family. experience amazing at your lexus dealer. when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. >>> you're watching cnbc "quauk on the street. goin

ge honeywell got reversed and that deal was blocked but eventually was reversed in court, not that itge there at all so we'll see where all of this ends up but i will tell you in speaking to sources close to the broadcom camp, they are considering all options at this point, including the possibility of going to a hell or high water provision. namely telling investors those certainly who are most concerned about the antitrust possibilities here the potential blocking of the deal and saying we will do whatever we need to in order to get the necessary approvals. that would not include a review were that to come up for example in some sort of forced divestiture, but might go a long way to ameal yor ate concerns. >> there may be pushback from index funds going to actually take the cash and potentially have to reinvest in a combined qualcomm broadcom and whether or not that would hurt the company but something to keep in mind there. as for whether we get the price increase and when we get it, that's the key question. march 6th is coming fast, end of this month approaches and one would expec

house would have loved to have had announcements like these from apple and starbucks and disney and honeywell verizon and at&t the way we've had the last few weeks. >> the obama administration certainly always wanted to see more people hired, but i think the obama administration frankly had a more grown-up approach, which was to look at how many jobs were created each month in total in the economy rather than to focus on high profile announcements by particular companies. and if you look, job growth in 2016 was considerably faster than job growth in 2017. so i think you have a lot of stuff here that is pr. and if you look at the fundamentals of the economy, it certainly this quarter's numbers were happy numbers no doubt about it. but how long that's going to last i think is very much in question >> yeah. certainly something investors are trying to grapple with even in the midst of this party, as you say. mr. secretary, good to have you back thanks so much >> glad to be with you. >> larry summers joining us this morning. as we go to break, "squawk alley" continues dow up 90 points and s&p reco

brian: if honeywell is ge. comp these hallmarks "real anies."rancine: roll tide. i disagree, but we will get back to that in a second. [laughter] belski, bmo capital markets chief investment strategist stays with us. coming up here on "bloomberg surveillance," more on brexit. and later on, the consumer electronics show in las vegas. we will speak with the sony ceo, mr. hirai. this is bloomberg. ♪ ♪ tom: it is a spectacular winter day in new york. tofinally get some warming all of you across the nation and worldwide. new york in an upper over the last four and five days at jfk. new york really studying what happened at jfk over the frigid cold of a few days ago. say good morning. this is bloomberg surveillance. francine lacqua in london. i'm tom keene in new york. here's taylor riggs. >> is the first high-level negotiations between the two more than two years. north korea will send a delegation to south korea for next month's winter olympics. south korea is also proposing temporary reunions for families separated by the korean war. it also wants

if you break out the top five names, boeing, minnesota mining & manufacturing, honeywell, union pacific, rockwell automation. let's pull out rockwell automation, that robotic business does business in 80 countries. jpmorgan believes in it, analysts hiked the price target an hour and a half ago to $190. they're behind the 8 ball it's $200 at the moment. rockwell automation ceo blake moret with us in a fox business exclusive. let me recent commerce secretary wilbur ross' comment upon arrival in davos. while there's been a trade war in place for quite a while, the difference is u.s. troops are coming to the ramparts on this war. your immediate thoughts on that? >> well, rockwell automation certainly supports free and fair trade around the world because we think under those circumstances, we and our customers can compete and win. liz: yeah. i would think that free and fair trade, it works in your business because 80 different countries, right? you import parts, i'm sure you export things. talk about the supply chain and how it's changed over many years. >> well, essential philosophy of our

. >> jimmy, you've been buying honeywell. cote just saying i can do even better than my predecessor and i think the aerospace play, how many times can we buy boeing up 10 on friday? we need more aerospace plays by the way, the united technologies note, every single cylinder is hitting at united technologies greg hayes, and can i just see this gear turbo fan had been the issue. no more. >> this note, pete, on utx is a buy at goldman sachs, reaches positive second derivative in 2018 they just love this company. >> and you look at -- and the fact that -- how about the idea that some of these companies that we're talking about not boeing, some of the companies have actually lagged a little bit and have a little bit of room to make up to the upside i think. some of the names in the industrial space >> and i'll give you another one that got an upgrade today. ups. you brought up fedex. >> i'm still waiting for the activists to surface there. >> and they will you look at the strength in terms of volume and dollars and the size going

capital investments and now also honeywell makes everything from jet engines to thermostats and will bring back $7 billion of its 10 billion in cash held overseas and it's going to do that over the next two years, why because of the tax cuts and also tonight more on the immigration deal the president is now offering that's past its citizenship for an estimated 1.8 million dreamers the illegal s brought into the u.s. as children democrats like nancy pelosi still calling deal the plan to make america white again saying the president is racist but we've got some immigration comments from two former democrats presidents you'll not believe what they said. the details are coming up we've got the sound. tonight an all-star guest line up including liz peak, former trump 2016 campaign spokesperson katrina pierson, republican border state congresswoman running for the senate there, and former uk prime minister david cameron's senior advisor steve hilton all here all tonight. politics money we've got you covered i'm elizabeth macdonald risk & rewards starts right now. president trump: since my

. >> look at honeywell, a monster for the last five years. why can't ge catch up?the reason is, they have no eps growth why are you paying a prime yul valuation for ge when you can pay the same valuation for honeywell and get twice the -- you're throwing us off i hear you. >> i'm flummoxed thank you, guys. guy adami, pete najarian much more coming up top of the hour catch all the "fast money" act action at 5:00 p.m. eastern. >>> is alexa going to kill your smartphone the "closing bell" is back in two with that answer >>> barry rosenstein, managing partner of jana partners, and anne sheehan will be live tomorrow on the halftime report. make sure you don't mi tsshat tomorrow 12:00 noon eastern more "closing bell" is coming right up things go wrong and an employee takes action against you, legal fees to defend yourself can be huge, even if you're not at fault. employment practice liability insurance helps cover these costs. trusted choice independent insurance agents represent multiple insurance companies and customize coverage to help protect you and your business. a

honeywell is higher on the earning by 1%. the company also raising the outlook in starbucks, down 6% revenue missing forecast sales growth expected to come in at the low end of the prior 2018 forecast >> thank you very much. >>> welcome, i'm tyler mathisen and get you up to date shares of wynn tanking now down 7% on the reports of sexual misconduct by the ceo and founder steve wynn the "wall street journal" reporting dozens of people coming forward, more on this developing story ahead >>> us economy growing steadily in the fourth quarter of last year but losing steam from the summer demand, however, for durable goods soaring last month coming in way above expectations michelle. >>> president trump taking the stage this morning in davos. his first ever trip to the world economic forum yesterday he told our joe kernan he was here to make the pitch for businesses around the world to come to america and this morning he told those gathered exactly what he told cnbc. >> i'm here to deliver a simple message. there has never been a b

to work we have been on casinos now since steve wynn it was a $58 stock certain thing still work honeywell, still on fire banks earnings, i thought goldman sachs was descend. i don't think he deserved the move to the downside but i understand what people are saying is this the next leg higher? i'm not certain. if the vic had been down maybe i could play that game but the vix is slightly higher. >> is the vix trumping what we are getting from companies, they are using the benefits of tax refor to spend money and create a whole other halo effect which we may not be putting into economic tolls point. >> when apple talks about millions and new jobs and a headquarters, blah, blah, blah, it gives you a sense of where this could be. companies couldn't give you the guidance and analysts couldn't do anything with it. the vix was largely about washington i won't so sure. but now that you get back to a market that is screaming higher with apartment least expectations that i think are absurdly high. rates up to 260 again on the tenner yao we have inflation people aren't factoring into the fedless mo.

new tax code and that's not baked into the stock as much as they try to do so united technology, honeywell, emareson, marker hannafin doing well look, when you sell elevators, jet engines and heating ventilation and air-conditioning or hvac as united technologies does you're going to be a winner in this environment as all three businesses are firing on all cylinders. however, down here at the icr conference in orlando, they're focused on a totally different story. let me boil it down. after my myriad interviews, i've come up with six props to explain why these consumer stocks are doing far better than we expected at this point in the year first for years, so much of retail has been weighed down by a cutthroat race to the bottom this time, though, i don't know. for instance, we didn't hear the promotion anymore being code for we needed to heavily discount items to get rid of them and it killed our gross margins if anything this was the first full price christmas since before the great recession as much as i'd like to praise the companies for getting it right and they deserve it, it's almost

and i think it has more to do with honeywell and not boeing. they have eaten ge's lunch at every turn that will continue. >> if they do get kicked out of the dow at $15 or $13. you get that kind of gap down, that's the day you buy it. those are the best opportunities right there. >> i challenged the analyst john inch a bit i said ge has had it rough but its market half is three and a half times bigger that tn smallest dow company travelers it's still at $140 billion in market cap his rebuttal is that the difference in performance between boeing and ge makes ge at risk. anyone agree with that not just its own problems. it says it's dragging the dow down, and therefore has a chance to be booted >> that's going to kick you out of the club because it doesn't like its performance. >> that's his performance. >> sound like inch might be off by a mile. >> bk. >> i think it is an interesting story. i own a 50 basis point position in ge in a portfolio, which to me is a toe hold on a company that i bought down around $20. it is a down more from that point

the honeywell chairman will retire on a high note.tion has to pick up where these leaders left off. nardelli. us is bob bob, do we need a new generation of industrial leaders? fresh blood with new perspective? think conglomerate's are dead. i think leadership and the ability to manager conglomerate is uniquely different. i was fortunate to grow up under jack welch at general electric, and we learned the importance of a variety of businesses any portfolio that allow you to push and full, so that when one industry cyclist down, the other is up, which allowed ge to have sustainable, predictable profits through jack's 20 years. when you become so narrow, you come vulnerable to the cyclicality and the cycles of industry. i am a big proponent of conglomerates. , x --ntioned dave cote alum.. he knew how to trade often have to switch resources. i started in appliances, i was in lighting, medical, transportation and power. it gives you a plethora of experience that you would not get in a vertical, single focus industry or company. scarlet: but

fore: maybe some a trail the president as well, and don't miss this, honeywell will report their fourth-quarterfor would you miss, have a great eveni alisa: i'm a alisa parenti in washington, and you're watching "bloomberg technology." president trump will cut off funding to the palestinians unless they agree to peace talks. speaking with the israeli prime minister in davos, president trump said palestinian leaders disrespected the united states by refusing to meet with vice president pence. president trump also denies he and theresa may don't get along. he met with the u.k. prime minister today. trump says the u.k. and u.s. share similar ideals. the british government also confirmed president trump will visit the u.k. this year, but did not provide a specific date. committee judiciary chair plans to release transcripts from closed-door interviews with donald trump jr. and other members of the trump campaign team that attended a meeting with russians in trump tower in june 2016. in southern california, authorities are allowing some residents to return home two weeks after mudslides killed at le

honeywell is one of our 25 of the fortune 500 companies who have hired financial coursera. at&t is another one of those companies and they're basically offering coursera to upscale their employees. we also are working with governments, including singapore and the philippines, to retrain their workforce, especially in topics like data science, technology, and business. and what's really fascinating is to see how these businesses who are hiring coursera are working with university partners to deliver entirely new learning experiences and even entirely new credentials. so, google, for example, has created a certification called the google cloud developer, which teaches people how to actually develop software in the cloud. recently, we announced, with google, the google i.t. certification. this is a program that's designed for people who do not have a college degree but would like to get into the field of i.t. and technology. and it will be delivered entirely online and qualify people to have technology jobs who don't have technology backgrounds. we also have a company in silic

like johnson and johnson, honeywell. we have been working with them staff and the puerto rican government to give technical expertise with regard to how to site micro grids at various locations to ensure better quality for customers and in effort to reduce energy costs to encourage them to stay on the island and further expand employment opportunities for people in puerto rico. >> anything else long term to address energy needs? >> we are working with all of the stakeholders that put together plans and integrating them, distilling them into one so it is a better document and adding whatever technical capabilities we've got to do that. just yesterday i met and my team met with the tac committee, technical advisory committee put together to coordinate efforts and walk through what the plan is moving forward. >> thank you. thank you all. >> thank you, senator. and assistant secretary walker, thank you for your efforts with puerto rico and all that's going on there. i appreciated the opportunity we had when we were there to

in 2004, he entered the private sector at honeywell international and then hyundai motor company. in his current role as president and ceo of american trucking associations, chris leads the at a's efforts to advocate and educate on behalf of the trucking industry. he knows how vital freight transportation is to the economy, and how states like wyoming depend on an industry that employs upwards of 7 million people and is responsible for moving more than 10 billion tons of freight annually. no better expert to discuss how we better move america's economy forward. mr. speaker, thank you. we look forward to hearing your testimony. thank you, mr. chairman. >> thank you, senator barrasso. senator cardin -- >> i'm very happy to have david thomas here today. he was named the deputy executive director of logistics and port operations for the maryland department of transportation, maryland port administration. in december of 2016. but david has been with the port now i believe 16 years. and has a distinguished record and understands all the operations of the port. under his current responsi

we've seen this with honeywell and other companies, et cetera a lot of analysts after the meeting were disappointed that there wasn't a sort of more aggressive approach laid out for the remaking of ge, given the fact we did see such type revisions to the longer-term outlook numbers. so i suspect this explicit commentary is a continuation of that, flabry saying every is really on the table, there are no sacred cows we'll see what happens we have a couple more months of potential uncertainty. >> thanks, morgan. >>> president trump says no one is talking about the economy, huh? we are it's been strong, but does the president deserve the credit we debate next. >>> and live to the detroit auto show, but everyone is talking about the north american free trade agreement. why? ckower lunch" will be gh rit ba your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jel

you have honeywell and united technologies talking about what goes into an airplane, you talk avionics, engine, and that's why the two have been moving higher over the last year, and, tifinally, the people who use the planes, airlines, benefitting from a growing demand worldwide for air travel expected to rise 7% this year that's why when you look at the arctic airline index, it is moving higher, despite the fact we are seeing rising fuel prices jet fuel prices have gone up, not to the point yet it's going to spook investors in the airlines, but it is worth watching, but overall, the demand for the airlines, the suppliers as well as the aircraft makers remains robust >> certainly does, phil, thank you. our phil lebeau. speaking of airlines, a champion of ultra low cost airlines and man behind the largest aviation deals in history, a jet order from air bus worth $50 billion, joining us now, the managing partner at indigo and chairman of frontier airlines, thank you for joining us >> great to be here, thank you >> saw the headlines about the massive order, oh, it's the, you know, the ame

those component businesses and they all have very generous valuations right now. 20, 24 times, 3m or honeywellr general -- >> well, it's -- >> you could say >> he was complimentary about flannery, the ceo and how nice to call $40 or $50 million tiny. >> i thought about that, too it's a tiny percentage of gdp and a small percentage of what mario wooe mario wields over there. >> he's seen enough, whether it's the bottom, the exact bottom - >> that's the point, right he's not saying it's the impact bottom just in the general area of, okay, i can see where the fundamental value might come through from here. >> and it makes you wonder because we won't know until mid-may other investors who might be getting in, the 13-d type investors thinking the same thing. >> stock definitely moved on that. >>> let's get over to sue herera. >>> here's what's happening. long-time congressman rodney fr frelinghuysen announcing he won't seek re-election he joins a growing roster of gop veterans who are not running. >>> former congresswoman corrine brown reporting to prison this morning. she was sentenced to five yea

so customers like johnson & johnson and honeywell. we been working closely to give them technical expertise with regard to how to cite the microgrid's in an effort to ensure better quality for these manufacturing customers. and to encourage them to stand the island and further expand the opportunities. >> anything else that you're doing were working with stakeholders that put together plans and to instill them down into one. whatever technical capabilities. yesterday met with the tech committee that was put together by prep its accord made our efforts and walk through what the plan is moving forward. >> thank you for your efforts. and all that's going on. we appreciate the opportunity we had when we're over there. obviously a great deal more to be done. i appreciate your ongoing efforts. several members had commented about the quality of the witnesses we've had this morning in the discussion. one of the benefits of having the gavel here's that i get to stay for the full morning. it has been important and enlightening in certain areas

when you compare it to a company like honeywell we said for years in this environment, ge should be crushing and they're not there's something wrong. >> as a shareholder? >> this is a case where people were downgrading at the bottom a case where we have one buck on earnings for 2018. >> which is in jeopardy according to a lot of analysts >> i don't think they can break up the company, either when you think about the cross holdings and the need to back up the capital, i don't think this news that people are moving on in the last couple days, look, there's a $140 billion company that everybody thinks is going out of business. i don't think it is. i think it's been priced to the floor, but this is not a stock you should go out and put your retirement into. this a stock, you should take some piece of your investment portfolio you want risk on, and that's a small piece, a company you can take a shot on >> before we go, can i say something? tyler, those cufflinks are killer >> my virginia cufflinks they won last night, beat georgia. >> did ralph sampson give those to you >> they're number two in t

industrials, i mean, i throw fedex in from to a certain extent names like honeywell, roper, boeing to the industrials are still relatively inexpensive. there's still some tremendous tailwinds for them as well i think all those sectors work. >> tim, who else you mentioned fedex. what are other things you think are interesting here >> if i think about the broader economy, first of all, let's get into the tech space because a lo the of people thought the end of the year tech was finally giving ground so the rotation we're seeing i think goes back into the growth tech. but also value tech. so look at a cisco, which for many years was really underperforming the peer group now i think at a discount. so eight times roughly eb to free cash flow for a company that's seeing a major play from infra-tech buildout. this comes with the cap-x that's being spent. i like a cisco, some of the auto companies still. got the great numbers yesterday. if you think about the domestic play, consumption trends and disposable income trends, a year ago everyone was writing off autos though valuations were cheape

but names like honeywell, throw boeing in there, names they don't talk about a lot, still have tremendous tail winds behind them. i think industrials worked in 2017 and there's no reason to believe they won't work in 2018. >> one last thing, kelly, energy is the outlier we've seen crude rally, the gas rally, the northeast freezeover. that's the one to keep an eye on, xle has done virtually nothing for the last five years. >> i'm just thinking you guys don't seem to agree on anything for 2018 >> i agree that steve grasso gets better looking at every year >> we agreed on a whole lot. >> maybe tech. >> financials have outperformed. >> you like valeant, energy. guy, you like financials, industrials. you're warning us on tech. >> it's something i don't agree with steve, i just like these sectors better that's why people for the last almost 11 years have tuned into a show at 5:00 to hear different opinions, kelly. you know what that show is >> that's what makes a market, as i understand it i'm not going to ask you about crypto i'll save that for the show. guys, thanks for joining us. >> see you

tom: i like how you said that because i'm shocked by what honeywell reported months ago. surprises that we are going to see his revenues left up higher than what's expected, but actually a bigger single-digit number? daniel: i think that's just it. on one hand, what will be driving for profits in the future is that a lot of that's arty happened. it's really only be technology -- the technology sector that you will see expansion above the inflation. tom: wonderful to have you both with us. let's talk about your morning briefing in the car. you are freezing in your car across most of america. for most of you worldwide, america cold. they are toasty in the studios of bloomberg radio. "bloomberg daybreak" -- new york, boston, san francisco, radio london. this is bloomberg. ♪ francine: this is "bloomberg surveillance." tom in new york and francine lacqua here in london. let's talk about oil and commodities. the commodity index at its highest levels in days. freezing temperatures have seen natural yes prices jump. oil is trading to the highest close in more than two years. acco

the property and they lease it back, so -- back to customers, customers like johnson & johnson, honeywell. so we've been working very closely with them and their staff and the puerto rican government to give them technical expertise with regard to how to site these microgrids at various locations on the island to ensure better power quality for these bigger manufacturing customers and in an effort to reduce their energy costs to encourage them to stale on the island and further expand their employment opportunities for people in puerto rico. >> anything else you're doing to address their energy needs? >> we're working with all the stakeholders that put together plans and integrating and instilling them down into one so it's a better document and we're adding whatever technical capabilities we've got to do that, just yesterday i met and my team met with the tac committee, the technical advisory committee that was put together by prepa to coordinate our efforts and walk through what our plan is going to be moving forward. >> okay. thank you, thank you, all. >>> thank you, senator. and secre

honeywell is reporting earnings.rofit of 1.85 a share for the fourth quarter that was a penny above what the street was expecting revenue beating the forecast they're reflecting a lower tax rate computer maker dell may be returning to the public market multiple reports saidel is exploring a variety of options including further acquisitions or going public. dell has been dealing with shrinking profit margins and cost savings that didn't pan out followed by a deal to pro viet emc. >> ran into michael dell. >> he's loved being private since he took the company private not dealing with shareholders, not worried about anybody like a carl icahn coming in and telling you what to do with the company that would be a pretty big about face. >> saw him at -- >> are all these things off th record >> yes >> you can say where you saw him. >> we did see him. >> this is serious stuff, interviewing the president, and serious subjects we're going to get to that i couldn't help notice, there was some serious hair on that interview. did