Doesnt add up about this suddenly hot stock and why he says retail traders are making a horrendous mistake a bitcoin bust, sharp selling in the last hour, the cryptocurrency down 2,000, briefly below 17,000. You see our bug on our screen by coinbase we start with the tax cuts wall street has been waiting for, despite a slight delay, the house has to vote again. The nasdaq 100 the biggest decliner with amazon, facebook, netflix, and google all sinking. Will big tech be the loser when it comes to the seemingly imminent tax bill . Big tech, youve had a big run. Whether its microsoft, amazon, facebook, you name it. It doesnt hurt or help that we had some downgrades and some folks are talking a little more bearish about a name like facebook today its understandable that some of the tech is pulling back you had intel screaming to the upside so is tech going to get slammed because of this . I dont think so they will probably be affected, certainly, but not as affected as those that actually played the high risk. Yes, theyre the ones that are going to benefit from the repatriation at 15. 5 which is a huge number. Except for the fact that theyll have higher tax rates on the billions of dollars theyre accumulating overseas, these these were areas theyre expected to have a lot of growth going forward. I know a lot of analysts had higher models for when this money was going to be coming back at the end of the day, you have a tax holiday, but a lot of the growth is coming from overseas to me, i look at facebook, we brought this up, its a poster child for a lot of things that could be difficult for the tech sector, including facebook which had its wrist slapped again, the french have been all over them theyll arguably run into trouble here abusive position in terms of market data and strategy so if you look at how its trading, technically its not been above 200, for a few weeks its not been above the 50 its a stock that the fundamentals are very good pete mentioned the apple downgrade, knocking the price target down to 175, saying you know what, the seasonality won be enough to offset the iphone x. Weve seen apple downgrades, it has an effect on the price and a week or so were back to where we were if not higher again, my sense is thats what happens with apple in terms of tech and how you trade it, micron is a great example. Micron had a great earnings call, month and a half, two months ago stock went from 38 to 50 retrace the whole way back to 38, december 1st, we talked about the risk reward in micron sets up extraordinarily well we backfilled the entire movement we saw over the last month. Today we report earnings i mention it because operating margins, to me, in my opinion, its whats important for micron they beat on 3 on operating margins, nand pricing is still intact why do we see the underperformance were talking about people potentially taking gains for the year there is rotation and i think you have a very clear dynamic for domestics, whether its staples, consumer discretionary. An altria, a stock people gave up on three months ago when there was some pressure from the fda in terms of their cigarette business businesses that have a 39 effective tax rate, lets be clear, theyre the big, big winners. Analysts are now upgrading, thats whats going on back to the tech world, look at google, nothing wrong with that chart. That chart and that company has been outperforming they had great numbers its not been trading like facebook or apple. I think you cant lump everybody in the same place. Rotation probably based on some of what youre talking about in the tax bill. Look at home depot, the last month and three months, disney, last month and three months, caterpillar. Look at where their taxes were and potentially where they could go to if this thing ever gets all the way through and you get to 21 from 33 , wherever some of these names are that could be huge thats why i think the last three, four days, boeing is another one, weve started to see some of those names lifting, lifting, 52week highs almost across the board if youre in big tap tech, ndx nasdaq 100, should you have a slight preference now that the tax bill looks all but passed to these sectors and names that have higher Corporate Taxes . I dont think so, because i think a lot of things that drove the top five stocks in the nasdaq 500, we know what they are, amazon, facebook, google, microsoft, netflix, the fundamental reasons those stocks are up 30 to 50 for the year, theyre probably even more effective in a lower tax environment next year, okay . That being said, all those stocks are within a few percent of their all time highs. At the end of the day, i think what tech investors or Growth Investors want to see even while you had this rotation into some value and cyclicals, you want to see a pullback, we need to see a pullback it will make everybody feel better about reloading on some of these stories if we close on the exact highs of 2017 as we head into 2018, you just dont think thats the sort of situation where people will feel great about reloading for 2018 at all time highs so come on, people, can we just have a 3, 5, 6 pullback here . No, were not allowed that hasnt happened in a long time. I understand what dans saying, think about where we are. Weve got essentially the white house now and washington throwing all kinds of stuff at a market thats already had corporate profits be at record levels weve never been this efficient. We have unemployment probably at a cyclical low youve got an enormous amount of Central Bank Headwinds coming. Things are as good as theyll get and were throwing more gas on the fire, im not sure we need it. Expectations are so outsized i think it renders some caution. The catalysts ahead, we know corporations are priced without a 21 effective tax rate but i do think that once you get through this, i think it could be very challenging. Are you taking profits . A little bit, doing some upside calls from my option guys lets be specific here. Thank you or stock that was on options action friday, dan. [ simultaneous speaking so yes, i think there are names and there are places where you should be doing that google is not a place where im taking profits as much as i love home depot, and i talk about it all the time, i just sold some today why because i felt like it was the disciplined thing to do. This stock went from 165 to 185 in what seems like a heartbeat why not take a little bit often the table . Disney is a different animal ive stuck with that one because i dont know that the deal potentially what they get from fox is all priced in yet its just off the 52week highs. I think it goes through those 52week high what would you trim here . Not just the tree trimming is important as well if you havent done that yet, folks, i encourage you to do it. The tree . The tree. This is what i learned if you have a live Christmas Tree seriously, this is a psa. I know were short on time boiling hot water into the bottom of it because it releases the sap which the tree will suck that water right up. Really . Honest to god ive only had my tree for two weeks. Can i still do that . I believe so. Anyway. What would you trim . Adobe, i talk about being long adobe, if you like amazon, youve got to like adobe but maybe dans on to and somet, maybe its run too far, too fast, so maybe its ripe for trimming thank you, dan, for enlightening me the latest poll on the popularity of the tax plan is out. John harwood has details reporter you guys were talking about what sectors will lose from this tax bill and which will win it looks like from the polling in our new nbc wall street journal survey, the republicans are the losers so far. Look at these numbers on the tax cut. Theyre not good when you ask is it a good idea or bad idea, 24 say this bill is a good idea 41 , bad idea. The rest dont really have an opinion. The second thing is, who is going to benefit from this tax cut . Whose tax cut is it . By 63 to 7 , americans say it is a tax cut for corporations and the wealthy, not for the middle class. Those are staggering numbers and that helps explain why on this question, which party is better on handling taxes, democrats were behind by 4 points in june in our nbc wall street journal poll now theyre ahead by 4 points. The exact same thing happened on which party is better on dealing with the economy so republicans have achieved a legislative and policy victory this is something theyve believed in deeply but right now, voters arent in a position to reward them. Of course well see what happens once its implemented and whether people feel differently when they check their withholdings and see what the broader state of the economy is. John, thank you, john harwood in d. C how is the Worlds Largest asset manager preparing portfolios for tax cuts lets ask. Here now is Terry Simpson, blackrocks multiasset investment strategist, terry, welcome. Happy holidays. Theres a healthy dose of skepticism according to the nbc news wall street journal polled part of that is many of those polled had no opinion, so they could be swayed. Were trying to think about it from the Financial Market perspective versus the real economy side i think theres no doubt this will definitely benefit the markets. On the real economy, some of those numbers that john talked about, is because we just dont feel like the evidence of economic history will point to higher investment and higher wages. Ultimately that will have a negative detriment on the market after a while. It appears like this tax cut is a trojan horse, it will benefit investors but maybe long run it will hurt the economy over the long run thats what were worried about. Theres a notion that the kinds of investors that will benefit are investors in certain kinds of companies, namely the ones with the highest Corporate Tax rates, names like retail, banking, cyclicals, would you agree, and are you adjusting your portfolio to match that we like the tax reform, its definitely going to benefit certain sectors. Were you talking about rotation. Rotation has happened. So you look at financials up about 10 over the last three months or so telecom as well, another smaller sector is benefiting from the tax reform packages. But we do get worried if investors are rushing too much into this. Estimates for 2018 earnings are still below where they were after the election some of this is priced into the rotation but not all of it is priced in. Terry, weve been talking about the flattening yield curve, now all of a sudden in the last week or so weve seen the yield curve go back the other way in a significant way whats better, in your world, for equities at this point, a flattening yield curve or steepening yield curve its interesting, we know why it was flattening, there was artificial suppression with the recent steepening over the last two days are so, investors are saying this tax reform will be more effective on the demand side of the economy, it will create more inflationary pressures, not necessarily on the supply side, that would lead to higher productivity, that changes our u. S. Potential gdp long run estimate. It keeps the fed in bay. So i think more of the recent reaction in the last few days or so is were getting tax reform, were getting inflation, lets adjust Interest Rates to that. Terry, you guys are global investors, that paints a nice picture for the u. S. But in terms of allocations, theres some arguments out there that this is going to be at the expense of investing in europe, and obviously theres an impact in Interest Rates all wait through the chain. Where do you guys line up globally i would say the debate, a lot of nations across the globe have been keeping their Corporate Taxes low, you can make the act that the United States is getting in line with what the rest of the globe is doing were still overweight international opportunities. You look at europe, japan, emerging markets, up 34 year to date we still think international is an opportunity because thats where we think the Global Growth cycle is rotating to we want to have leverage in the trade there. Do you overweight international over u. S. . Yes were not buying into u. S. Or selling out of it but were holding our levels i want to play would you rather with you here, terry. Thats a big compliment, by the way. Translatoit is, youre an ho member of the desk technology, which were debating may be negatively impacted, or banks . Great question. We still think this economic expansion has room to run and we havent seen a lot of loan growth the loan growth was strong in the early part of the recovery hopefully with deregulation that can actually allow the major banks, they look at the top eight or top 25 or what have you, to do more lending in the economy. If we see more demand out there, that will be beneficial for the banks. We like the tech story long run, but if youre looking for a value oriented play at this stage of the cycle, you want to look at financials even with the threemonth rally weve had. So banks is the answer. Thanks for playing, Terry Simpson of blackrock thats called melissa coaching through the game. You bury the lede, you have to come out strong pete, same question to you banks for sure. I agree with terry about the loan growth story, its something that in the future well see more and more of it. Jamie dimon talked about it all the time every time we wait on earnings from the banks, thats what were looking for, are we seeing that loan growth, are we seeing it i take the banks what did you do today quick. Ive been getting long on european banks eufn is a way you can do that. The ecb will start pulling back on bond rates, theyre going higher there theres more leverage in european banks than u. S. Banks coming up, stitchfix is sinking since its debut last month. What went wrong . Plus andrew left of citron is targeting one crypto stock hes calling a crypto scam hell tell us why he says blockchain is making fraudulent claims to investors. Later, tim seymour says theres one cryptocurrency he just bought that he thinks will be the next big winner the name when fast crypto fast money returns let out your inner child at the lexus december to remember sales event. Lease the 2017 is turbo for 299 a month for 36 months. Experience amazing at your lexus dealer. Trust 1 doctor recommended dulcolax. Use dulcolax tablets for gentle dependable relief. Suppositories for relief in minutes. And dulcoease for comfortable relief of hard stools. Dulcolax. Designed for dependable relief. Or a little internet machine . It makes you wonder shouldnt we get our phones and internet from the same company . Thats why Xfinity Mobile comes with your internet. You get up to 5 lines of talk and text at no extra cost. So all you pay for is data. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit, or go to xfinitymobile. Com. Money. An earnings alert on stitchfix, since going public last month. Courtney reagan has more reporter shares are down sharply after hours, but theyre up 63 since going public. Shares are down 11 . Revaluing of preferred Stock Options is making up most of the earnings that were reported. The revenue changed only slightly, up a little bit from the guidance that stitchfix gave investors in es1 which was six weeks ago. We should note that revenue is up 25 in a year stitchfix also has 2. 4 million active clients thats up 30 over last year again, though, stitchfix told us that earlier this fall so we didnt get any new information there. Then when it comes to guidance, revenue guidance for the Second Quarter is above analysts estimates. Full year revenue is above consensus. The gross margin will decline near term as it invests in new categories but growth is continuing with mens and plus consumers categories shrinkage also hit gross margins. Shrinkage is the cost of inventory that cant be sold founder katrina lake is working on different strategies to improve that shell be on tomorrow morning at 11 00 a. M. So well ask her about that the call is ongoing, because its the first time that the company has held an earnings call, theyre spending some time going through their process before getting to guidance it had like a 10 reversal intraday like courtney said, its up 63 . People thought this was going to be a blue apron sort of thing. I think the quarter was fine, 20 growing users, 30 and theyre new to the category. Can we pan over to guy over here if there was ever a guy that you guys should get on your stitchfix thing, look how hes dressed. We need a stitchfix box for this guy. Pleated pants, patterns galore it was his birthday yesterday. We can get a stitchfix box for guy adami, lets clothe this guy for 2017, please jeez. Quick my thought is this. They feel a little bit like snap why do i say that . Its decelerating at a rapid pace that comparison is not a friendly one ahead, forget about bitcoin. Tim seymour has another cryptocurrency that he says will crush the competition. Im melissa lee. Youre watching cnbc, first in business worldwide heres what else is coming up on fast. Got to be the shoes a number of sneaker stocks are surging. Well tell you which the traders think you can buy. Plus if you think the crypto scam wont finish ad, wait until you hear what short seller andrew lt efhas to say about Riot Blockchain when fast money returns [vo] progress is an unstoppable force. The season of audi sales event is here. Audi will cover your first months lease payment on select models during the season of audi sales event. This is not a cloud. This is a tomato tracked from farm to table on a blockchain, helping keep shoppers safe. This is a financial Transaction Secure from hacks and threats others cant see. This is a skyscraper whose elevators use iot data and ai to help thousands get to work safely and efficiently. This is not the cloud you know. This is the ibm cloud. The ibm cloud is the cloud for business. Yours. The crypto craze conditions with a number of names surging thanks to the many i cania but not all is as it seems to be with these companies dom chu is at headquarters to break it down. Reporter melissa, a reality check for those who thing its easy money when it comes to trafficking in cryptocurrency stocks the sec suspended shares in crcw, from today until january 3rd for what regulators say are concerned about the accuracy and adequacy, including questions about manipulative stock transactions were talking about a stock that was 3 and change in september and rocketed to 642 bucks earlier this month, currently suspended from trading at 575, making it worth 12 billion total. All of this is happening on average daily volume of just over 5,000 shares in the past two weeks. It was a red flag. Now, another stock that raised eyebrows is long fin bec