bob pisani has >> reporter: as traders look back on a very unusual year, the big issue is will all the good news continue into 2018. there was a lot of it in 2017. the s&p rose 20%, its best return since 2013. the u.s. economy grew modestly. stocks were also helped by a global economic expansion, record earnings for company, low volatility, low interest rates, and the expectation of tax cuts as income at the end of the year. the big winners were semiconductors they rode the wave of buying in smartphones, smart appliances, and electric vehicles, and homeowners roved the wave of more young people going out on their own. commodity stocks like copper were also strong because the global economy proved. even though oil moved towards $6 at the end of year to two-year highs, investors who had been burned in 2015 and '16 mostly stayed away. economies around the world improved in developed and emerging markets. india, brazil, hong kong, saw double digit gains with mid-single digit gains in europe. will global growth continue in 2018? earnings will get a boost next year thanks to tax cuts, but wh

for "nightly business repor i'm bob pisani at the new york stock exchange. >>> as bob just mentioned, the brightening prospects of a major tax cut especially for corporations contributed mightily to today's rally. every vote counts senate, of course. today the bill picked up a key one from arizona's senator john mccain. ylan mui is covering today's development from capitol hill. ylan, where do things stand as of right now? >> reporter: tyler, debate is still handing on the senate floor but this bill does appear to be gaining momentum, especially as senator john mccain has said that he'll be a supporter of this proposal. he put out a statement saying this legislation isn't perfect but he does believe it brings relief to american families. now, there could be one new wrench in the republicans' plans, that is a new government analysis that shows the tax bill would only generate an additional $407 billion in revenue over the next decade. and that is not going to be enough to cover the $1.4 trillion cost of the republican tax bill. and that could also prove to be a problem for someone like

bob pisani is . >> reporter: today marks the start of the so-called santa claus rally period, viewed as an old wall street indicator of market performan in the year to come. the santa claus rally refers to the tendency of the markets to rise in the last five trading days in december plus the first two trading days in january. it's been good for an average gain of 1.4% in those seven trading days over many decades. the failure to rise is thought to indicate the start of a bear market or at least some kind of pause later in the year. but some traders are saying, bah, humbug, after the year's already hefty gains. dow, s&p, and nasdaq have all surged 20% or more in 2017. 5% of those gains came just in the last five weeks. we have a tax bill, a government spending bill done. in the absence of other catalysts, investo could be looking for excuses to sell. santa claus could be on his way with a little help from banks and industrials, sectors that would reap the biggest benefits from corporate tax cuts. for "nightly business r" m bob pisani at the new york stocexchange. >>> purchases of new

bob pisani takes a look. [ bell ringing ] >> reporter: 2017 was a year of surprises. and they say 2017's gains can't happen again. but why not? by almost all measures 2017 was one of the most extraordinary years in the history of the stock market. we saw outside gains, record highs, and record low volatility. many traders say we can't have 20% returns in the s&p because it's not normal, the average was 8% since world war ii. they say we can't keep hitting new highs. 62 all-time highs this year. and they say we can't keep up this low volatility, only 8 days when the s&p moved 8% or more, the average is 50 days. they say we can't have this huge divergence in sectors, with technology outperforming telecom by 40 percentage points. but why can't we stay at the highs? earnings are not peaking out and if anything, are going up thanks to tax cuts. the complaint that the market is expensive is true. when the global economy is expanding and earnings are at record highs, this is the time you can justify a higher multiple. outside a big outside shock, we have been in a longer ter

bob pisani takes a look at what's happening beneath market surface. >> reporter: the markets may have cheered the passage of the senate tax bill. but this raises the question how far can we push this tax cut train. since early last week, the sectors that would see the biggest boost from tax cuts are the ones that have outperformed considerably. four sectors have done very well. they would get the biggest boost from a 20% corporate tax cut. financials stocks, energy, industrials, and telecom. they would see double digit gains in earnings. one sector would see almost no boost. no surprise. banks, telecom have been big winners and tech has been a loser. there may be limits. today we saw bank stocks sell off aggressively. this may be a sign of profit taking and a sign we may be approaching this rally's limits. we're not out of the woods yet. the senate bill would put off corporate tax cuts until 2019. president trump hinted the final corporate tax rate may be 22%, not 20%. beyond taxes, traders are split between those who want to sell on the news and those who say we could have a rally in

bob pisani has more from the new york stock exchange >> the dow and the s&p were lifted to record highs once again. two main things powered today's very modest rally. expectations for a rate hike and continued hopes for tax reform. we saw a mild rotation from growth back to value stocks with technology taking a breather and bank stocks getting a boost from rising bond yields. this comes a day ahead of the federal reserve's rate decision, of course that's tomorrow, and many are expecting a rate hike this month. house speaker paul ryan elsewhere said house and senate lawmakers are close to the finish line, that's his words, on a tax reform deal. we've been waiting for this for a long time. kentucky senator rand paul raised some questions about whether he would vote for the tax bill after tweeting that he would not, quote, in good conscience vote for the proposed government spending bill to avert a shutdown. he said the bill would add to the nation's already massive debt. so he's a maybe. the s&p suffered a slight blip midday on this news but regained most of its lost ground to close just

bob pisani was in the middle of the wild action at the new york stock exchange. >> reporter: talk about a turbulent day for the markets. we haven't seen this in quite a while. the markets have been fix a lotted on global growth, record earnings, and the prospects for tax cuts. traders have spent almost no time thinking about the risk in the market for president trump's potential legal troubles. we dropped 350 points today when abc reported that mike flynn was prepared to testify against president trump and that trump directed him to contact the russians. originally reports said it had been about the fight with isis. the dow plummeted 300 points on reports that a memo from former fbi director james comey surfaced, saying trump asked him to stop the investigation into michael flynn. stocks sold off and rose again when senator jeff flake announced he was supporting the tax bill and mitch mcconnell said he had enough votes to pass the bill. the bottom line, the markets are in a tug-of-war between tax cuts and president trump's potential legal troubles. but tax cuts have proven today that th

for "nightly business repor i'm bob pisani at t >>> still ahead, new breakthrough for blood diseases and new hope for those who need ♪ >>> a number of biotech stocks made big moves today on new breakthrough in blood disorders and blood cancers. executives and researchers are presenting their findings at a key conference in atlanta, and meg tirrell is t. >> reporter: the newest treatments for certain cancers and blood diseases change the way we think about medicine. instead of being taken every day, week or month, many of these therapies are designed to be administered just once. that new research was on display today and over the weekend at the american society of hemotology conference. it sent some biotech stocks flying. one was bluebird bio with results on treatments for blood diseases and myeloma, a one-time treatment that uses the patient's own immune cells to fight cancer and the results so far offer hope to those who have exhausted all other options. >> it's exciting in the sense that in myeloma, we're seeing something that hasn't been seen before, transformality for patients

bob pisani has more from the nyse >> reporter: hi, melissa we're getting closer to finally trading bitcoin futures. trading starts on sunday night there will be three initial one-month contracts. january, february, and march each contract is just one bitcoin. the contracts are traded and settled in cash. you'll be required to post a margin of 40%. that's up from 30% just a few days ago if it you want to trade bitcoin futures, check with your broker. but be forewarned. a lot of them seem to be sitting out this initial round of trading. so for example interactive brokers is one of the few firms that will allow trading on its platform but with margins of 50%. ceo thomas peterffy said on "fast money" yesterday that there will be no naked shorting. e*trade, schwab, fidelity, they're taking a wait and see attitude traders will be looking at several issues when trading begins in earnest on monday. first, with such limited initial participation, what kind of volume will we be seeing second and more importantly, what's the bid/ask spread? and what's the depth of the book that market make verrs have

our bob pisani is at the nyse with details >> reporter: hi, melissa the retail investor appears to be waking up bitcoin can claim part of the credit e-brokers have been rallying especially since tax cuts got real at the end of november. and with good reason first, there's more trading activity all the brokers are reporting daily avenue regular trades have been up in november over october, up 15% for e-trade, 12% for ameritrade, 14% for interactive brokers, 8% for schwab second, new assets are increasing investors are putting more money in their accounts. schwab has record levels of net new assets third, higher interest rates big help clients keep cash in these trading accounts and as interest rates rise, brokers make more money, they're stingy, keeping the higher interest rates from your cash. fourth, tax cuts broker will see 18 to 20% increase in earnings under this tax-friendly scenario. finally, i think it's fair to give bitcoin some credit bitcoin futures have slowly rolled out the ecosystem around bitcoin, particularly any stocks associated with bitcoin, have seen very, very heav

for more on the markets reaction, let's get to bob pisani on the floor. bob? >> john, we have discussed for weeks now what kind of premium there is in the market for tax cuts, what would happen if it didn't occur, but what we haven't discussed in a long, long time is what kind of risk there might be in the market for the president's legal troubles if there are any legal troubles and here we see an example of this coming out of nowhere frankly, it hasn't been a market mover in a long time, because we haven't had anything substantiative at all to talk about or trade on. now we saw very, very quickly almost a 15-point drop in the s&p 500 you see there, as you can see, it bounced back a little bit, but now the market is going to have to shift its focus at least for the time being from the tax cuts to discussing what kind of risk there is in the market for the president's legal troubles we just don't have our hands around it enough these headlines are certainly enough to get your attention trump -- flynn said trump directed him to contact the russians that was the

pisani, who's on the floor tell them what's moving today, bob? >> hello, david. happy thursday, everyone the important thing, a little more stability in some of the tech names it's been a rough month for them let's take a look, semiconductors, generally open to the upside. better over in asia, as well consumer discretionary has been strong retail and home builders, forget about it banks, mixed energy had a pretty good month overall here i was looking at some of the apple suppliers over in asia, so hon hai had a horrible month overall. you can see, up here, but it's been down a good 20% overall in the month since the end of november so bouncing a little bit there so stability semis overall this month, yeah, the apple suppliers have been weak, so skyworks and broadcom have been weak, qualcomm, but it's been mixed elsewhere and in the last few days, it's generally been much more stable. not more stable than the home builders, because they've had a fantastic month, fantastic year overall, opening up again today, fractionally, but most of the names, g

, thank you. >> bob pisani from the new york stock exchange. >> are you advicing any of your clients to put any of their network in bitcoin. >> >> no. >> why not. >> we just -- it's -- >> scared of it, don't get it? >> we like cash flow and we like assets we understand -- we're not suggesting that they don't do it but it's not part of our allocation. >> are you fielding a lot of calls regarding it >> not many. >> you can't -- i can't do it and neither can you. >> yeah. >> you would be in an s.e.c. audit within six months. absolutely cannot do it, even if you wanted to. >> but with what bob pisani has just addressed, the ceo over at i.c.e. which owns the new york stock exchange is spot won this because he didn't want to jump on with both feet with the futures when they came on and futures, i love them, but they are only this much of the market and etf and several etfs obviously van wolfswinkelvoss etfs as well as pro shares etf, they are much more widespread than these gentlemen. >> you had to think that this was coming as well. >> you have a quick thought? >> you can play it by ownin

bob pisani is looking at today's wild ride. hey, bob >> reporter: and as you heard, we have a real tug-of-war going on in the market let me show you a timeline of major events and how it's impacted the markets it was about 11:08 when we got the initial abc report, that came out, they said mr. flynn was prepared to testify that president trump directed him to contact the russians originally as a way to work together to fight isis in syria. that was 11:08 you see the big drop in the market, about 350 points then we had the european close and that's when things stopped and started turning around i think selling from europe was a major factor in the selling. volume accelerated going into the close, it lightened up after that that's an indication europe was a big factor then you see about noon, we saw senator jeff flake announcing that he was supporting the tax bill and the markets again started to move to the upside. so what we have got here is a market battle, a tug-of-war between the premium for tax cuts that we have been discuss

bob pisani, thank you so much. how should you buy futures b.k. is at the plasma breaking down a little strategy with "the more you know. >> futures irfayly simple instrument i'm not as star as the guys at 5:30 on friday first of all, you want to identify your key levels number two, the thing with futures is you'll have high risk/high return high risk/high reward, you'll have leverage in this particular case on the cboe, you have to put up roughly half of what you're doing, and then you always, always want to use a taupe and have a stop-out level, because futures can move so fast, you want to make sure you protect yourself let's go to the next one here. let's take a look at this trade. okay looking at the bitcoin futures i know some people thought bitcoin would be anighated, because it went up 20%. here's what it looks like. the nice range right here, so you want to use that as a protective stop area so if i look at futures here, my stop is at 1730. that's just below this range here i'm going to buy the futures at 1790 my target is 2180. you might

i'm bob pisani, cnbc business news, new york. >>> some people are still bullish. michael novogratz thinks bitcoin could reach 40,000 >>> let's take a quick look at u.s. futures before we go. s&p 500 pointed to open a little bit higher, 2 points dow jones up 33 points that's it for today's show i'm joumanna bercetche "worldwide exchange" is up next. for your heart... your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember. my friend susie cracks and hello sensitive bladder. ring a bell? then you have to try always discreet. i didn't think protection this thin could work. but the super absorbent core turns liquid to gel. for incredible protection... ...that's surprisingly thin. so it's out of sight... ...and out of mind. always discreet. for bladder leaks. also in liners. >>> a stunner in alabama, doug jones, the apparent winner in a

the dow is up more than 1% the nasdaq remains in the red, though let's get to bob pisani on the floor. bob? >> hello, john we are seeing some major rotation going on in the market. i know it looks like everything is up, the major indexes are, but you'll see some changes. let me show you the big indexes right now. there's the transports look at that, just taking off here the russell 2000 is also on the upside, and notice the s&p 500 is lagging here. remember the transports and the russell small caps have lagged the s&p 500 the entire year, but things are changing very fast. ever since about last tuesday, this started when the tax cuts started getting very, very real. things took off. look, there's the transportation, that's the white line this is the last week and the bottom line, the s&p 500 look at that, transports are up almost 9%, s&p is up maybe 2% or so you can see the outperformance, so things are changing here as underperforming groups start doing better the other major thing you can notice is value versus growth. this is sometimes nebulous to define, but this is the vanguard g

bob pisani is live at the new york stock exchange to break it down >> reporter: it's not a show without bitcoin. another volatile day for bitcoin in general the cboe futures were halted for two minutes because they were down, limit 10%. the latest moves come as the south korean government says it may implement new rules to regulate cryptocurrency trading. those new regulations might include prohibiting anonymous trading accounts and could give authorities the ability to shut down exchanges, huh. much of the trading in bitcoin occurs in asia half of all the volumes in japan, essentially another 5 to 10%, is in south korea the united states makes up most of the rest of it. we've seen wild swings in bitcoin has retail speculators have driven up the price from 10,000 to 20,000 to 11,000 to now roughly 14,000 the action today suggests that in 2018, one of the biggest risks for bitcoin is not speculative risk it's regulatory risk regulators in many countries but particularly the u.s., japan, and south korea are going to have to decide how aggressive they want to be with bitcoin they will be g

our bob pisani is live at the new york stock exchange with the very latest. >> reporter: it is heating up. volumes have been modest but a bigger player is about to enter the bitcoin market cme will start their bitcoin futures sunday night, full trading on monday. several differences between the two features apparatus the cboe contract size, one bitcoin. it's five for cme. a dollar per contract on the cboe, five on the cme, but remember, cboe is just one bitcoin while the cme is five. margin rates are kind of similar. cboe at 44%, cme at 47%. hey, remember, nasdaq will be jumping in in the first half of 2018, we'll be covering that as well i anticipate the volumes on cme will be higher than cboe simply because cme is a much larger futures platform than cboe interactive brokers, one of the few online brokers allowing the trading of bitcoin futures, says they will now allow investors to short bitcoin futures on its trading platform up until now ceo thomas petterffy has not allowed shorting but he now says he will allow short sales because of the big premium the futures contract has over t

pisani we decided to change our bug we made a new animation. check out the bottom of your screen now for our official litecoin watch there it is. 360. now you can watch it all show long as it lights up bob was talking about the transaction speed. for you, you think that was the key behind the rise today? >> that's right, that's part of it bitcoin will generally take ten minutes for each confirmation. litecoin is much faster. what traders are doing is using litecoin to move between exchanges because it's very fast it's faster to get litecoin from one exchange to the other. there are these arbitrage opportunities that popped up traders are using litecoin they're somewhat indifferent about the price, they're using it as a movement type mechanism, as a vehicle >> so you think the rise in litecoin, does that make it more fragile? >> these things go up every single day i actually think there is a very good use case and a very good fundamental case for litecoin. they've been ahead of the curve on much of the tech, the lightning network, atomic swaps,

bob pisani is at the new york stock exchange to break down the moves in some of those names bob? >> reporter: it's like 2000 all over again the bitcoin craze seems to be reaching some kind of new phase. take a company and announce they're doing something bitcoin-related and hope it turns into gold. you've got for example a company called key capital corporation this is a financial services company listed on the pink sheets, announced it had started a fin tech division with a specific focus on pursuing blockchain and cryptocurrency opportunities. it goes from 20 cents to over $3 you have digital power corporation, engaged in power systems, announcing it has launched a new business division dedicate to go the mining of cryptocurrencies that goes from 60 cents to over $4 another financial technology company, longfin, went from $5 to over 140, now back to 40 and change after saying it was acquiring a company which says it's a microlending company based on blockchain. long island iced tea company, a beverage company, announced today it's changing its name from long island iced tea cor

back to you, melissa >> thank you very much, bob pisani in terms of concerns of the futures industry association, one of them is that the underlying product, bitcoin itself, could move tremendously, it could move over the weekend, where featurutures aren't even traded we've seen a move of 40% in the last few hours it could exceed the limits >> it absolutely could it's not just on the short side too. if you get caught long and it's limit down, you don't have anywhere to go as well this is going to be a little bit of a learning process. it's going to be slow. most of the futures merchants, futures commission merchants are taking a wait and see, slow approach, and i think that's right. we'll see what kind of volume is out there, sunday night into monday this is the deep end of the pool in investing when any asset goes straight up, you have to be aware that trees don't grow to the sky. i love bitcoin, but be aware of what's going on. >> an online broker will offer its customers futures trading in bitcoin. the ceo warned on this show that bitcoin should not clear with other products in th

coinbase says they're working to reduce the problems. >> thank you, bob, bob pisani at the nyse let's bring in the president and coo of coinbase himself, asiff hirji, in his first televised interview since taking that role asiff, welcome to "fast money," we're glad to have you >> thank you, melissa, for inviting me to the show. >> let's talk about the astronomical growth in the number of accounts coinbase has. who are these new accounts and what is the average size of these accounts >> so we have been seeing a lot of account growth, as has been reported our trade volumes are up about 30 times over the course of this year and we've had days where we've opened, you know, tens of thousands of accounts. there were even days when we were the number one app in the app store, which is surprising it's i think consistent with the asset class maturing and becoming more mainstream these are the same types of people that you would imagine would have trading accounts at brokerages and want to invest in cryptocurrency we're delighted that they have chosen to open their accounts at coinbase and have

the vix hitting all time lows in what has been a quiet year for the market bob pisani is breaking it down from the nyse, hi, bob >> reporter: thanks, melissa in an extraordinary year for the stock market, one of the most extraordinary developments was the continuing run of low volatility the s&p 500 has had a total of eight days this year in which it moved up or down 1% or more. only eight that's way below normal. in 20 '01, the s&p 500 had 48 such days. 71 in 2015 39 in 2014 with such low volatility, it's no wonder that the traders' main gauge, the vix, stayed low all year the vix averaged 11. the average in prior five years was almost 16. the vix traded under ten, a total of 92 sessions in 2017 why exactly is volatility so low? you can partly cite the fed and global bankers which have kept rates low. you can also cite low earnings these trends may reverse next year, we don't know. there are longer term forces that may be at work. it's possible, likely even, i think, that the growth of passive investing is playing a part in tamping down volatility. overall trading volume has been lo

bob pisani >>> let's get to the bond pits, as well. rick santelli at the cme good morning, rick >> good morning, carl. we did see a rise in claims, but we also saw a little bit of a loss inour last look at third quarter gdp. but not much 0.10 all in all, it hasn't been a bad run for the economic data. and when you add in going into year end, there definitely seems to be a bias as global rates move a bit higher. a lot of that, of course, may be all the legislation in the u.s. turning the market you know, many ask, are the changes in taxes the ultimate reason or the reform the ultimate reason for some of these moves? maybe in part, but i think the actual benefits of the financial aspects of the tax plan moving forward, that proactive, on the fly adjustment may add in a whole lot more over time one week of tens, clearly higher year-to-date of tens, i like this chart you know, we are now toying with the march highs and the 260s and there is enough time to get there. there just isn't a lot of data markets are getting thin but it is the dire

for "nightly business r" m bob pisani at the new york stocexchange. >>> last week, we reported that the fcc had voted to change the rules that govern the internet. now it appears as if that battle is not over just yet. our julia boorstin takes a look now at how this issue is unifying both democrats and republicans. >> the chair votes eye. the item is adopted. >> reporter: the backlash is growing. following the fcc's vote to over-allnet alln net neutrality regulations. dissenting fcc commissioner cliburn and senator cantwell hosted a town hall on twitter on why they believe it's so important to preserve the protections impleme by the obama administration, warning that startups and consumers could bear higher costs. >> internet service providers today produce and own content. they even own media companies. so they have incentives in place to favor their own traffic, to favor their own content, to favor their own business interests. >> reporte and yesterday house republican marsha blackburn introd a solution to the fcc's vote. her open internet preservation act prevents blocking and thrott

bob pisani is at the new york stock exchange rick santelli tracking it all at the cme. bob, you first. >> i think tyler, let's take a look at the s&p. we're up and we're up for a good reason because the market and the market friendly answered the three questions that they care most about the market does number one, on future rate hikes, that's number one we had three back in september and it looks like for 2018 and it looks like we've got three now. that's the most important thing the market wanted to hear. number two, the economic projections. we got a bump up in 2018 and 3.9% unemployment and 3.5% gdp and the whole inflation debate here declined outright and staying below 2% and acknowledging that once again and that's certainly market friendly overall, and you've got the core cpi this morning that was a below expectation, and you put that all together, generally those are market friendly and we are up probably three points on the s&p over where we were before we started. as for the press conference, everyone wants to hear from yellen about her grade and i want to hea

i mean, everything that you want -- >> bob pisani keeps mentioning, the week of the traditional santa claus rally. >> yes you know, i still think that's very possible. you have retailers acting really well today, but oil's not and then financials are iffy so i mean, you're having these sector rotations, these little mini rotations, but with such little volume, i don't even know if you can really go and say that but normally, what we've had over the last 37 years, the last 35 of them, we've had what traditionally would be either a santa claus rally or at least some, you know, some idea of a rally. this is not anything like we've had before. >> and it's a mug's game trying to predict what's coming in the near term, but typically, you get a change in the tone of the market with the new year. >> yes. >> either if it's been a down year, it suddenly wants to go higher with new money coming in or if it's been higher, people are going to start taking profits. what do we have to do here >> i think with tax reform, a lot of people are still trying to figure out what it means to them even though

bob, thank you bob pisani. >>> now my next guest is a high school dropout turned bitcoin millionaire. just millionaire, evan eric finman bought his first bitcoin when it was priced at 12 bucks a token. he now owns 401 bitcoin and joins us now eric, thank you for joining us and for your time. >> glad i could be on. >> so i want to go back to may 2011, got a $1,000 gift from your grandmother and tip from your brother a lot of people will have christmas experiences like this, okay they're going to get some cash, going to get tips from people. should they buy bitcoin right now? >> yeah. i think it's a wonderful time to buy bitcoin. you can actually buy a fraction of a bitcoin so you don't have to go in and buy, you know, $10,000-plus on a whole kicoin t actually buy $100, $50 worth of a bitcoin. it would be a great stocking stuffer. >> do you try, eric, to figure out what it should be worth? do you have any sense that holy cow, this thing is so up much, i'm going to cash it in and sit on my gains here or think as we've heard some people say, it could go to $100,000 or $1 million? >> i mea

. >> bob pisani at the nyse. >>> if you got bit coin for christmas, here's what you need to know. >> we've seen several hacks in 2017 and that's why it's so important to protect your crypto currency here's what they're recommending to do. first, write down your private key. some people like to have a third party store their keys another option is to get a hardware wallet like ledger or treser they store your encrypte private hotline. if you want to add bitcoin it requires multiple private keys keep in mind, watch out for the fees if you plan to convert it, expect to incur a charge you can transfer your bitcoin to a debit card again, watch out for those fees. the zappos covers a fee and it depends where bitcoin is trading at the moment. also, privacy. if that's important to you, bitcoin many times is marketed as a currency that lives virtually therefore harder to track. once you earn by the coin, either is attached not as anonymous. >> lucky enough. >> exactly thank you. >>> shares of apple falling today on reports that the iphone x didn't sell as well as expected over the holidays jo

bob pisani has more here bob? >> good news, folks, we are acting rationally in the last five or six days so the sectors in the stocks that might see the biggest earnings boost from the tax cut are the ones that have been moving the most in the last five, six day. it's happening again today take a look at the sectors today. financials and energy stocks would be the sectors that would get the biggest boost from the tax cuts so they're the ones that are leading the market right now industrials, also we get a boost. telecom stocks would also get a boost. they, too, are leading the market technology stocks would get the least boost and they're the ones that are actually down and they have been down for the last several days now, if you look at some of the typical stocks in this group, jp morgan, bank of america, huge gainers recently they were gainers again today. verizon which is a telecom stock, another big gainer in the last two days. it's up today. exxon in the oil groups alts on the upside we may be testing the li

pisani, thank you >>> let's join rick santelli at the cme group. >> morning, david. what a week it's been. as i look at the board at 179, two years are up, one on the day, four on the week. ten-year at 239. up two on the day, up five on the week a correlation is changing. this is something you really need to ask yourself we've been in this one world, one market for quite a long time primarily due to the activity of central banks. but things are starting to change a bit look at the intraday of tens one week of tens gives you a better picture you see that thinly traded run-up we're filling that in and holding. it's significant to know that 244.5, 245 is where we settled last year and 233 is the average price for the year those are two levels we could see a lot november the last month of trading looking at one week of booms this is my correlation the next start will really explain it this is a mid-april of this year chart of our ten-year minus the european ten-year, the bund. it's at the highest since april of this year why is that important? because the fact that bund

pisani >> well, here is what's coming up next on "power lunch. our tax reform impacts retail stocks and one of the top industries and top analysts breaking it down for us. he was named on the 2018 list. and the wildfires ravaging los angeles is getting stronger. it is sha iny buying opportunity and all that and much more, coming up on "power lunch. at's the global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow. you myour joints...thing for your heart... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember. >>> the dow industrial is up 20%. great year, the question is this, what's going to happen in 2018 lets bring in rob hayworth an

it is six straight weeks, lets head to bob pisani, roberto. >> hello tyler, happy new year here is what's important you heard for some of the txdot, we are seeing a lot of stability for the last few days. what's more stable in the last few days nvidia and broadcom or sky works. right now stable is important. elsewhere, remember the big move up in retail that we saw unusual in december to see retail stocks to go through the roof they're starting to crack a little bit they are down again today, not big. this is starting to move to the downside and this is a little bit more than normal behavior than i would expect for the month of december in retail business not that it is moving any where, the home builder just had a terrific this group is up about 20% of the last few months. and a lot is better of tax issues for them. there is an itfs of this and it is mostly home builders and it is up 55% or so on the year of big accelerations for the end of the year it is not just tax cuts for these companies. we had low rates and we had unlimited supplies we have been talking about that all year diana o

lets get to bob pisani with this energizer bunny. >> a lot of interesting rotation going on sectors that are going to see the biggest boost from the earnings, the biggest boost from their tax cuts are the ones that are out performing today we are seeing energy, financials and industrials and telecom generally do better. technology as you heard before is a notable lagger. it is not surprising to see that the biggest gainers from the tax cut are the four that are listed here so take a look here. energy and financial industrials and telecom would have the biggest boost to their earnings from a 20% corporate tax cut technology important would have the least boost, only 1.5% from the tax cut and as a result, we are seeing this rotation and it makes some sense since last tuesday, this group, these groups, financials, industrials and telecom have notably out performed technology some of the debates of values of growth moving on technology is not just the fang stocks that have down recently if you look at the semiconductors and robotic stocks and social media stocks have been down cyber security

you see nasdaq is of the most of half a point bob pisani is tracking on the floor. hi bob >> they're having a vote over the house and we are having a vote down here as well the vote is, do you sell on the news in we have been talking about this tax code and you can see here we don't have a lot of energy today i want to point out what the markets have been doing since the tax code got really hike november 28th, that's the day when the senate budget committee came out of tax reform we were sideways throughout the good part of november and the market start taking off right after this you can see some clear winners and losers banks for example would be a big winner here. you can see conductors to the sown side and transports have been down. that was the lagger. the important question is where do we go from here the spread on the two and the ten years have been steepening noticeably the last couple of days finally a little steeping of the year's curve back on friday or early on monday morning bank stocks which i mentioned before of the big beneficiaries have not been doi

bob pisani is at the new york bitcoin exchange with more on the rush for the crypt occurrence -- currency the first full day of traiting would be on monday, december 11th that would be the cme which as announced already, that's a week later, and the nasdaq, which is also planning to introduce futures trading in the first half of 2018 what's next? the bitwindow enthusiasts are hopeful an etf might be coming they denied application earlier in the year on the grounds that the crypt ocurrency was unregulated. the argument is a simple one, the presence of a futures market will demonstrate that the cry cryptocurrency is regulated to start. it will be two -- price limits and margin rates so the cboe and c meismt e will have margin rates of 30 and 35%, in addition to being ability to short bitcoin, there's speculation about whether futures will lower or increase the volatility left. so the cme, for example says they will be using price limits that kick in during gains of losses of 7%, 13, and 20% that would some in some case halt traiting more than 20% from the prior day's close. if it hits that

bhob bob pisani is on the floor >> they say 2017 gains can't happen again, but why can't they many trarders say we can't have 20% returns because it is not normal average is 8%. they say we can't keep hitting new highs. we had 62 all-time highs this year that is even in years when we hit new highs. the average is less than half of that they say we can't keep doing that and they say we can't keep up with the low volatility, only 80s da eight days where they moved. and we can't have these huge differences between sector performances so technology best performing sector outperformed energy and telecom by over 40%. but why can't we stay at the highs? look at this, earnings are not peaking out and if anything, they are going up thanks to the tax cuts and the complaint the market is expensive? that is true, but the global economy is expanding. this is exactly the time people could justify a high multiple and staying high as for the low volatility story? it seems clear that absent a big outside shock, we have a low volatility period that is likely secular. long temp. caused by low rates, etfs, wha

pisani is on the floor to tell us all about it >> it's a big, big moment. we've been waiting for this for many months. first, the cboe will introduce three monthly contracts. it will likely be january, february, and march. the initial price will -- for january will probably be close to the cash price right now. it will be cash settled. that's the most important aspect of this whole thing. you don't need to own bitcoin to trade it it's cash settled, and you can short it that's in dollars. how about where is this all going? how will the s who will the sellers be? probably by the coin miners, maybe some institutional traders. who is the marketmakers? we don't know. they don't typically announce that, but several big ones will likely be participants how many firms will participate? we had some big firms like jpmorgan already announcing they won't allow their clients do it initially. schwab and ae mera ameritrade a waiting. and will it reduce or increase volatility we don't know. that's a big question we want to answer in the next few weeks long-term, here's the

pisani has those details bob? >> hello, kelly. 2017 was a record-breaking year on all fronts for the etf business look at these numbers. inflows up nearly $500 billion asset under management $3.5 trillion mutual funds, getting there. money poured into u.s. stock funds but also into these international equity funds because the global economy did so well. investors are still looking for a yield. they also put a lot of money into u.s. fixed income funds now, not everything was a big winner investors took small amounts of money out of high-yield funds and mexico funds, a reverse trump trade. gold miners saw outflows de spite talk of an infrastructure plan, utilities and transports both had outflows for the year now the story for 2018 is absent some kind of massive volatility, investors will continue to take money out of mutual funds and put them in lower cost etfs. stock pickers will continue to lose investment dollars. money will come out of active management funds and into funds tied to indexes like the s&p 500. mos

bitcoin futures popping in their first full day of trading on the cboe cnbc's bob pisani joining us with that story. bob, everybody is talking about it. >> it is and it's finally happened the good thing is at least trading has happened and relatively orderly we passed 18,000, folks. bitcoin futures opened 6:00 last night eastern time, 15,000, moved up very, very quickly. here you see it's over 18,000. so it's been small, 3,600 contracts, figure the math here. 17,000 p 17,000, 18,000 about $60 million. that's not a lot but it's a start at least here's what's important. let's go over what exactly a futures contract is, why this is so important first of all, it's just agreement to buy or sell a commodity or a financial instrument at a predetermined price and a specific time in the future so let's look at what this bitcoin contract does number one, it's just one bitcoin, that's all, very simple to understand. prices close to $18,000. the margin you can get into it for 44% margin, what it will cost you it expires january 17th. that's what's important. now, let's see how you could do this and

pisani. what's going on this morning. >> always a pleasure to see you, david. happy new year, everybody. the important thing today, it's sort of like what the rest of the year looked like let's look at the sectors, we know what the winners have been, but it's semiconductor and it's been bank stocks later in the year home builders and arrow space and defense, all winners the big themes for 2017, i would say number one, synchronized global expansion, it's a very key point why the markets went up it wasn't just the united states we did have record earnings towards the end of the year and low, low volatility, low rates, low inflation, those three themes very much impacting the market and of course throughout the year the expectations of tax cuts winners and losers in 2017 not surprising when you get low rates and you get an economic expansion, home builders were fabulous limited supply as well that helped, semiconductors on the internet of things in general and maybe the miners for bitcoin. globa

pisani making a sharp left turn is here to explain. bob? >> we never used to care, but now we have a futures market it's starting to attract attention. makes a lot of people crazy the price difference can be pretty significant. so take a look for example this morning bitcoin was trading at notably different prices, even on the larger exchanges, so kraken, $17,212, gdax $17,150 can be as different as 2% on the larger exchanges what's going on here several issues first there's liquidity. volumes can run into thousands of bitcoins a day. some of the smaller ones, however, may do a few dozen bitcoins that can lead to significant price differences. second, no standard agreed upon way to price bitcoin that's kind of an issue. third and most importantly, you have an arbitrage issue here you need to own bitcoin in cash at the exchanges, so, for example, if you want to buy bit stamp and sell coin base, you have to have dollars at bit stamp and coins at coin base you need both of them, collateral to make the moves quickly, because if you don't h

pisani here. the big question -- i'm the stocks guy, the big question we're grappling with here, number one, 2018, is this peak earnings we're going to see number one and number two, is there going to be some kind of multiple compression. we're pricing now and trading anywhere between 19 to 20 times forward earnings and some people are saying we can keep that kind of high multiple and get to 3,000 on the s&p 500 what's your take on peak earnings and multiple? >> right now the data has come together so beautifully towards the end of the year. if you look at inflation and look at stress in the capital markets, everything seems to be looking really good. we're going to go with a more bullish tone to start off the year and consequently, you could see more multiple expansion but we would point out that the returns from here -- we think are going to be lower because when you look at the multiples you're talking about, you're at 18 times earnings or something like that and margins are fairly high. so ove

pisani is at the new york stock exchange with more bob? >> hello, brian. they say 2017's gains can't happen again but i say why not many traders say we can't have 20% returns in the s&p because that's not normal. the average is 8%, since world war ii they say we can't keep hitting new highs. 62 all-time highs and even in years when we hit new highs the average is less than half of that that's true, but they say they can't keep up with a low volatility only eight days when the s&p moved 1% or more the average is 50 days, that's amazing, and they say we can't have the big difference between sector performance and technology the best performing sector outperforming telecom and the worst performing rp by high dispersion earnings are not peaking out and if anything they are going up thanks to tax cuts and the complaint that the market is expensive, well, that's true but when the global economy is expanding and earnings are at record highs, this is exactly the time you can argue for a higher multiple. absent some kind of big outside shock we've

pisani is here to tell us any other number could have a dramatic impact on the street, right, bob >> absolutely. listen, tax cuts are moving the market see it today not just any tax cuts. the market is already pricing in certain assumptions about what this will look like. here's the two most important things the tax cuts will be effective in 2018. no, not putting them off until 2019 or 2020 that's not going sell. of course, the other issue is the corporate rate will be 20%, not 25%. that's going to be the key question the market believes that tax cuts will be helping earnings here look at the 2018 earnings estimates. put up that full screen. with tax cuts, we're talking estimates that, earnings will be up 8%. but without -- with the tax cuts, we're talking about much more than that 11% to 15% this is why the market moves on the tax cuts you just get a lot more earnings boost with models that estimate around 20% reduction, 20% tax rate so anything less than that is a problem. what about the s&p 500 it's expensive right now we're almost 19 times forward earnings that's really high but

melissa, back to you >> thank you, bob pisani let's head to the bond pits. rick santelli is at the cme group in chicago hi, rick >> good morning, melissa yesterday we saw 177 settle right back up to 181 in twos the long end was hit a bit 273 wasn't a terrific close on the 30s. they're coming back, but ever-so-sploever-s ever-so-slowly let's look at a two-day chart of tens certainly, it looks like it's going down, okay and tailing up a bit, because after yesterday's fed statement and pre-many central banks, like the european central bank today, rates did come back just a little bit at the end, but not much now, if you look at a one-week chart, here we are pretty much at the same place we've been doing the bulk of our trading, kind of in the mid-230s or a smidge higher. look at a one week of bunds. their one-week chart looks a little bit more aggressive, because they traded a little lower in yield, higher in price and now they've grabbed on again, but once again, it wasn't that long ago we were 45 to 50 basis points now we're hovering around 43 foreign exchang

producers are still bringing out, but we're at 5,738 on wti rick santelli keeps pointing out, bob pisani, the dollar index, he's watching that like a hawk this week, a stairstep rise. we're almost to 94 which is the number he's watching as an inflection point for the dollar index. >> the dollar has been weaker recently so we're going out, looks like a new high for the s&p, 2,647 was the old high another historic high. a lot of things have gone right this week. we got better than expected japan gdp data, goty great chine data china numbers, china economy holding in there progress on the brexit talks. >> right. >> we had decent numbers today on the jobs numbers. and fair wage growth numbers overall. the bottom line is our story, you and i keep talking about, the slow expansion of the global economy. that story very much intact today. we saw global markets up around the world on this kind of economic news. so here we are again of course, next week we'll find out what the federal reserve is going to be doing. >> as if we didn't know. >> as if it we didn't know but the markets, look, the mark

bob pisani has more. >> hello, kelly. etrade is now going to alloy customers to trade cboe, cboe futures in bitcoin joining td ameritrade and interactive brokers. the e-brokers have been actively recently particularly on bitcoin. more venues for trading bitcoin future are starting to open up cboe, futures contract, down recently, 18,000, when it started trading. that was december 10th now 15,500 that's down 15% last week and a half speaking of bitcoin, i asked art cashin what might happen with bitcoin in 2018? particularly how the federal reserve and other central banks might react in cryptocurrencies got really big >> i don't think they want bitcoin, but there's an aspect of it that they would like and what they would really like to do is get us out of the cash business have me stop carrying around green pictures of dead president s and id stead have an all-digital economy. they can keep track of that. i think what you'll see is the fed, itself, may wind up helping somebody top a digital currency. >> great point speaking

pisani. >> and $58, see we're holding at $58 a big mover overall. this is the start of the sabtnt claus rally, tendency of the stock market to move up in the last five days of the trading year and first two tends to go up 1.4%. nothing on that today. this is a week that belongs to bitcoin. what can you say we've been talking about it, all of us have market doubles in a few weeks. all of a sudden you get people trading other kinds of instruments, other kind of coins. you get the founder of litecoin saying he's selling positions. this is signs of some kind of market top, at least temporarily. i think the blockchain has an enormously bright future, but what we've been seeing in the last few weeks has classic signs of what we saw i think back in the year 2000. the important thing is most of this trading is retail driven and not futures driven we'll see what happens in the next couple of weeks. >> thank you, bob. merry christmas. >>> a mixed market going out meaning we have a little red and a little green going out to the close for this friday merry chri