to me, invested in liyft, the sorts of things investors may start to rerate the stock higher if they big plan where they could be a leader in autonomous fleets or ev that sort of thing. sets up as an interesting trade. again, defining risk 1%, 1.5% of stock price. optionality heading into january. >> move on a record year for records. the dow sets near all-time highs, the classic dogs of the dog theory point to big gains in the new year, in the index breaking it down, a guy who know the a dog or two cnbc's dom chu. >> i have two of my own. a habbenese, lucy and tibetan terrier, the blonde 30-pound one. i'm not the only dog guy out there. some investors taking stock who the dogs of the dow will be in 2018 quick refresher. dogs of the dow, a screen slash investment model ten highest yielding stocks in the dow. buy and hold them a year rinse and repeat the thinking is that the highest yielders often are stocks that have gotten beaten up and due for a bounce collecting a better than average dividend. as things stand now, here's how the new dogs will look for the new year in the number te

the you think a stock deserves to go higher because of a rerating or takeover or anything else that wouldce a great gain, wait no one's looking you can afford to be patient don't dwgive up on your best ideas. don't give up on yourself. eric in texas. dew point>> caller: big san antonio boo-yah to you, sir. >> what's happening? >> caller: i have 50 stocks in my portfolio and they're all dividend payers, yield about less than 0.25%. can you tell me what other metric i can use to ensure the dividends are safe >> we have a cash flow analysis in "stay mad for life. it's a very in-depth analysis how to calculate the cash flow, which is more important than the earnings per share in terms of trying to figure out if the company's dividend is safe tom in new jersey. tom. >> caller: hey, jim. thanks for taking my call. >> sure. >> caller: a week or so ago you mentioned that if you got a portfolio of about $10,000, you have a basket of stocks of about five stocks. >> right >> caller: if that portfolio grows with the help of "mad money" to like $100,000 or even a million, what would be the number of s

more data, more stuff to model, okay, you can start figuring out what it does to eps growth, you can rerate some sectors, you can start thinking about what that means as it relates to economic growth you know, that's the one area. no, no, i don't have any -- i get it like at the end of the day when you think about it, you can say, okay, so certain sectors should be trading on market multiples, others may see it come in. then it comes down to what does it mean for economic growth, jobs that's the thing that i think is going to be 2018 argument for most of the year. >> i agree with you. i think at least from the trader point of view you can have a boost to the stock market without necessarily having that boost to the economy right away. >> except for the fact that we are eight years into this bull market. >> sure. >> we are in the pretty late stage of the cycle he would are going to have global tightening for the first time you fashion it in 2018. to me, i think all of those factors are going to come into play. >> the first three-quarters of this bull market this was earnings less recovery we

they're going autonomous investors may rerate the stock higher if they see some big plan where they coulda leader in autonomous or autonomous fleets or ev. it sets up as an interesting trade, we're defining our risk, it's 1, 1.5% of the stock price, it give us me optionality as we head into january. >>> let's move on. it's been a record year for records as the dow sits near all-time highs the classic dogs of the dow theory could point to big games for the index in the new year. breaking it down is a man who knows a dog or two, cnbc's dom chu. >> reporter: melissa, i have two dogs of my own, a habanese, lucy, 15 pounds, and a tibetan terrier named bogey. some investors are taking stock of who the dogs of the dow will be in 2018 the dogs of the dow is a screen slash investment model you take the ten highest yielding stocks in the dow, buy 'em, and hold 'em for a year, rinse and repeat the thinking is that the highest yielders are up in stocks that have gotten beaten up and might be due for a bit of a bounce while collecting a better than average dividend as things stand right now, here is h

. >> reporter: not all travel is rerated to being ho holidays.a johnson said destinations like california, florida, mexico and hawaii mean travelers want a little me time, too. >> this is definitely an opportunity for people to get away, a little stress free vacation before they head back into the new year. >> reporter: air fares 20% lower than last christmas are also making this season a bit brighter. chris clacken, nbc news. >> now at 6:00, a final good-bye for two men who dedicated their lives to service. even in their final hours. >> and who never hesitated to offer a helping hand right up until his last breath on this earth. >> new fallout as a fourth lawmaker makes plans to leave congress next year amid allegations of sexual misconduct. >> internet game changer, the ruling today that could impact the way you access the web. >> and labor of love, meet the local nurwh their drug addicted mothers. >> first tonight an emotional farewell for two fallen heroes. >> both dedicated their lives to helping others and finding justice. deputy state fire

buy a stealth play and i know what you love, electric vehicles put it altogether, and i think the rerating, that's the term of cree as an actual semi conductor company has only just pe gun here is the bottom line, better to be lucky than good, people. cree was very lucky when the regulators blocked them from selling their best business to the germans with the company's non-l.e.d. semi conductor business catching fire and a smart ceo running things, i think you should buy cree. ideally maybe a bit of a pullback because this cree is a lot better than the old one. much more "mad money" ahead including my take on the power of protein in this market. is it time to start looking for a play in this space or could you be counting chickens before they hatch how can taxes impact the housing market the labor department released the unofficial figures for november this morning, are they worth celebrating? i'll give you my take. stick with cramer. at t-mobile, when you holiday together, great things come in twos. like t-mobile and netflix. right now when you get an unlimited family plan, netflix is inc

beat, they are realistic about what may go wrong that sales don't recover and multiple doesn't get rerated>> so, you know, really what it's come down to and you look at the names that have been outperforming as of late, give you a great exam if you have a strong e-commerce than you actually can still be bricks and mortar but you've got to be strong there look at walmart. it's been fairly flat lined because it already made that move it's been a $97 and $99 stock. >> i think it's the same analyst upgraded walmart, by the way, to a buy today. >> right. >> now you could obviously say is that a little bit late. >> prescient. >> a little late. >> but not late if you believe -- if you believe in the story. >> and you also have to understand one thing about walmart in this case, 60% of the revenues comes from grocery. what's the lowest margin of sales that you have out there, in grocery because of that you've got to keep that in mind when you look at walmart and why it trades where it trades versus the competitors, a target or if you want to go bigger box like costco. >> would you have both walmar

as we look rerate and therefore the income sits in europe for the structuring's and arguably with the, you are going to see a stronger currency. for global investors, they can see the money in euro and markets. guy: have a great chart showing how your socks just how european stocks -- how european stocks versus the u.s. if you believe in tech, you buy u.s.. of -- the the lack overweight to financials. i think the valuation gap is also there because it europe doesn't do his own share buyback. your prefers to return money through dividends. we see in the u.s. much more whether companies. maybe the credit to buy back shares in the u.s. is going to come to an end. matt: i wonder -- you see rates rising. how do you see the shape of the curve playing out? we also have the short-term rates rising. does that mean flattening? neil: we would expect global bond markets to see flattening as the fed yanks short-term rates higher. as we have seen in 20 -- in 2017 come what that means, your lost money in the seven bond markets. they have been yanked higher by correlation to the u.s.. guy: can i go b

the whole group needed to be rerated lower now that the retail death star had them in its cross hairs. the weakness in the grossers continued for weeks or in some cases for months but lately something interesting has been going on. the whole group is making a comeback in fact, to borrow a line from mark twain in response to a premature obituary, reports of this industry's demise have been greatly exaggerated. and it's not just the supermarket stocks that have been hanging in there. they've had some remarkable run, up 20% to 40% from their post-selloff lows. crazily enough, at this point, most of the group is trading above where it was when we learned that amazon was getting to the brick and mortar grocery space. that's not supposed to be happening. so what exactly did occur here and what can we learn about the behavior of supermarket stocks and what can it tell us about the way things play out when the amazon death star targets an industry when amazon told us it was buying whole foods for $13.7 billion from june 16 the whole supermarket space got pummelled not one of my absolute favor

corporate point of view, i don't think markets need any reason to rerate because it is about the underlying economy at the end of the day. everything is trickling down. people are not really mentioning that enough. if it goes down to the underlying economy, unleash the u.s. consumer. spend some more of the savings would have been accumulating. then we can really see the market takeoff. matt: i think mentioning trickle-down economics is dangerous to your health right now. let me point out the corporate tax rate really has come down a lot. a lot of people are skeptical of this tax reform, but this chart shows the white line, the individual tax rate affected personal income tax rate throughout various the individual, tax rates pretty much stayed the same. the corporate tax rate, this chart goes to 1970. it has come down substantially. is that going to be a boon for earnings coming up? again, a lot of that has already been priced in. we have to distinguish on a sustainable level, and that is where be rating is necessitated in the repatriation the president has talked about. that is going to be

the senate votes later tonight on a measure that would be the biggest rerate of -- a rewrite of u.s. three decades. from 35% tousiness 21%. used by twoeduction thirds of american households. majority leader mitch mcconnell says the change expected to finish the tax bill sometime tonight. brexitopean union chief negotiator is taking a tougher stance. show barnier says there will not be any special carve out the british financial services industry. warned that the ky have to follow any roles passed by the eu during a transition. 18 million people in need of food. this is the largest food in the world, to make sure it gets to those who need it. >> taking away, and the result pushing back will be lost. met with pope francis at the vatican today and the two leaders spoke in private for .pproximately 20 minutes set to contain water from the jordan river. olive tree branches symbolizing peace. global news 24 hours a day powered by 2700 journalists and analysts in 127 countries. scarlet: investors just published a look for 2018. measuring portfolio manager in california. why is there a disco

investors looking at value opportunities across all different sectors and trying to think about, who can reratend who has a totally different earnings >> there is value as a style and as a factor. slightly different flavors with the same idea. looking for cheaper areas in the market >> if you say so >> yes i think that the positive sentiment we're seeing in europe is being equipped by tarm. i think as people turn the year into 2018, the fact europe for the first time in this cycle could be the growth engine next year in terms of the rate of change i think that's a powerful argument and i think the valuation is pretty cheap there relative to other market economies. >> let's talk sfpfizer >> i've followed pfizer for years. the company keeps delivering it is on trend i don't know about everybody else but i'm eating pills like candy these days and half are made by pfizer at the end of the day, has the sector that will benefit from a whole bunch of tail winds including an aging population. >> a little tmi there. hello? >> he doesn't want to talk about it >> he doesn't get it okay we're watching -- >

this company will get rerated. nvidi' will get rerated.ill happen we're debating market cap. i don't think we're debating viability. >> different company tesla. where do you land right now? >> we are massively long the convertible bonds. why the convertible bonds? again, it's the safest and the surest way to basically bet on elan musk who i just fundamentally think is the most important entrepreneur of our generation >> but you don't like the equity you don't like the stock >> the equity represents tremendous volatility. if you put it on the screen, you can see it right there for our risk management, for the way that i want my capital and my partner's capital run, what i want is a mechanism to get 95% of the up side, zero of the says down side. literally, the bonds give you that you know, there's no need for me to sort of step out there, try to be a risk cowboy, to prove something that we don't have to prove because elan has said to the entire world, hey, listen, you can buy the naked ek equity or take this other thing which gives you the

there is a potential rerating later on the same evening.ou could compress the spreads further, couldn't it? mike: yeah, i think it is possible and i think generally, the healthy growth backdrop in europe is going to be supportive for spreads in the eurozone, relative to bunds. i think everywhere you are likely to see the dynamics of stronger growth and the reduction of the ecb qe lead to some upward pressure on bond yields. matt: how much reduction and how quickly do you expect the ecb to do that? they obviously have extended until september of next year, but they have given themselves an out if the economy continues to grow quickly. mike: they will keep going through september and then whether or not they have a stop in october or extended for a few more months is hard to tell. it does not really matter that much. the point is, the pace is slowing. if you look at it --bining with boj purchases it is the middle of next year it becomes an issue. matt: it sounds like manus -- [laughter] anna: i will. let's talk about the best way to play that

. >> disney up 5 yesterday i think this will cause a major rerating of disney because i think the india. >> the property star, the values on that, the trajectory of the cash flow may signal a bigger number i'm sure that's been an area of focus in terms of valuation, jim. there had been talk they might have wanted to take it public at some point but the regional sports networks, some would have thought, why aren't they being kept to our conversation on disnis, we were having a moment ago, if they were to have a direct to consumer espn or all sports, wouldn't they want to own all of these rsns too and say you're going to get everything? >> how about if you spunoff espn and bam tech and fox regional, i want a sports entity and i believe it could turn around and you have this incredible international entertainment company that could be fabulous in the meantime, the achilles' heel that is espn died down, it's not goi down to 75 but this is worth a huge amount to disney. >> synergies are quite -- >> fantastic. >> the studios alone, so many other areas they can realize real cost savings and sy