Terranova. He plays a great guitar . Its called the mr. Wonderful. Its built by fender i was a shareholder in fender for years and i made no money. Joe, was he actually playing the guitar he was. This wasnt a milli vanilli situation . No. No billy gibbons, the zz top guy, who im in awe of as a rocker tweeted me and said hey, hey, not bad, but youre leaving a little on the e chord. Hes an investor he watches cnbc. This is good. Joe, were excited to have you. Thank you for getting up early on a holiday week. The last day of trading for 2017 lets tell you where u. S. Equity futures are. Theyve been negative throughout the morning. S p is the only average that would open in positive territory if it were to open up now, up by 3 points overnight in asia, final trading night of the year has come and gone largely mixed. The nikkei slightly negative hong kong positive as well as shanghai 2017 finished off with a gain of nearly 20 for the nikkei. Look at that 19 year to date look at crude. Weve been watching this throughout the week. Started the week with quite a lot of volatility. Up sharply, 3 then we took air out of that rally. Still above 60 bucks a barrel. Thats the first time we pierced that level since 2015. Seeing a spike in nat gas again up 1. 5 . Thats because of this epic cold front. Isnt it amazing in 2017, where the investor is disappointed by nothing on the last day of the year, there goes oil above 60 bucks the final piece to the puzzle. The sector was the only negative sector on the year. Does that mean setting up energy is a great play . Theres been a tremendous amount of talk and number two, fund flows in the last couple of weeks into the Energy Sector on the belief exactly of what youre saying, its a value play, the last opportunity for the investor to make some money. Mlps, thats the challenging area you could not have predicted this weeks bump it came on the back of that libyan pipeline blast. I think this has been building the Energy Equity names, the xle had quite a move over the last ten days its been building youre seeing the fund flows i would suspect its more than libya. I think its trying to increase the allocation does this change your mind about the bankruptcies pending next year when all of the debt raised great point about 20 of the junk credit market is Oil Companies issued for sale theyre still not cash flow positive but theres winners in that that leads to the necessary consolidation in the shale plays and bigger names theyll be the winners i keep hearing while Business News is a good thing, the Energy Sector might bring so much production online that you have the ancillary effect of driving the price of oil back down again. Yes i agree with that. When we talk further about tax reform and what is the benefit to the sector, not as much as other sectors. Lets talk tech apple. What did they do . Apple doesnt like to apologize, because couple big stories were watching this morning. Apple making a rare apology following customer outrage and lawsuits after seeing it slow down older phones with aging batteries. The tech giant cutting prices now for battery replacements and changing its software to show you whether your phone battery is good. Starting next month, out of warranty batteries for an iphone 6 or later will cost you 29 versus what was 79. In a blog post apple says we know some of you feel apple has let you down we apologize theres been a lot to of misunderstanding about this issue. So we would like to clarify and let you know about changes were making shares are up 47 yearondate nothing to do with this issue. I dont understand this wh what dont you understand the iphone 6 leaves a shell and crawls around your floor, you cant use it anymore who cares if it has a new battery. This is planned obsess obsoleteness they should say this is an old phone, its dead, get over it. The perceived issue was the issue was with the operating system not the battery now people are saying the whole time i could have spent 79 bucks instead of 600 as the operating systems get better, they take more power by default because they require more power to operate correctly. You can do 4k 60 frame of video on an iphone x, its huge but it takes a lot of memory nobody thought the operating system itself was purposely slowing things down. Apple should hire me to tell everybody stop your whining and buy a new phone. I love you. Theres a difference i had the 6 plus, now i have the 10 the 10 is mind boggling good. A phone call is crystal clear. Yeah. What do you think of the apology . People were saying this will end up in the Business School hall of fame. Good or bad both. A little bit of both i agree with kevin. Do you see anybody driving a 1954 car around . No the 6 is its in the smithsonian already. Its showing you dont use that anymore a 6 is only four years old, is that right . Three years old . An eternity in cell phone time like in dog years you would like to think its still going to work. No, i would like you to buy a phone so i can make money as a shareholder. Im just defending those who have old phones. By the way, we give our old phones i shouldnt say to our kids, they cant take them out of the house, but they do use them you think everyone should know the deal is, its two or three years, then youre done. From now on when someone complains about this, you say please buy a new phone so you can enjoy the new technology and kevin oleary can make more money as a shareholder 1200 for the oled. And you need all the memory because if you need the new camera you need the memory i will resell one thing, the head phones. The air buds do you use them . No. Its aair pod air bud is a golden retriever who plays basketball you go on a Conference Call they go for six hours what kind of radioactive stuff are you putting to the side of your head. I thought of that have you lost them yet . Have not. Cost me about 160 the best investment made when i do a long Conference Call, speakerphone away from the head lets get you the new years weekend forecast with Michelle Grossman whats the latest . All right looking at bitterly cold air again. Dangerously cold air for the next several days. We have not seen the coldest yet. Though its been freezing. We have that arctic blast from canada that will affect us over the next several days. Even reaching parts of the south. 14 in cleveland. 9 below zero in duluth feels like 25 below zero 2 degrees in boston. 16 in raleigh. We dont go high from here we dont get warm. Tomorrow temperatures at 18 degrees for new york city. 1 degree in chicago. 25 degrees is the air temperature in fargo it will feel like 42 below zero. Sunday, thats the day, especially new years eve, thats where we will see that surge of arctic air. We will look at temperatures as we wake up sunday morning, 17 in philadelphia 4 below zero in indianapolis on monday, 13 in washington, 12 below zero in minneapolis, 7 in denver layer up as you head out through the next several days. Were looking for this cold snap to continue through at least the next seven days. Thank you for that. I dont know how i feel about all this how do you feel . I feel as though for the first year im not in ottawa during the new years break, im very happy probably good for coat selling. Or hats, gloves arctic goose. Another one called Moose Knuckles moving up i need to know this everybody has a cappnada goose. What is the next Moose Knuckles. Its a slang for the other append dance that hangs loose on a moose. Theyre called Moose Knuckles. Thanks for making that Family Friendly for the 6 00 hour i walk around proudly with my canada goose youre passe because you dont have Moose Knuckles. The thing about the coat, it has the fox lining, which is a big issue. I have a full seal coat to stay warm, made of seal pelts and animals were harmed in the making of that coat, but theres a lot of them. They eat a lot of crabs so im supporting the crab industry now. I have to process that. Well continue our conversation about apple. Joining us now is dan ives head of Tech Research at gbh insights you heard a bit of our love affair with the iphone x, the air pods, not air buds what do you make of the apology . This was a pr nightmare this is something that they need to stop head on. Theyre going into the biggest product cycle ever the longer this lingered with 350 Million Consumers potentially upgrading over the next year, 60 of that will upgrade. They needed to address this head on this is something, especially the iphone x, 8, 8 plus, theyre going into a pivotal year. This was the last thing they needed they did a smart move here getting ahead of this. When you say they needed it, you think this was so offputting, so offensive to certain people that they wouldnt go back to an apple store and get the 10 or the 8 i think us more about the timing you have right now, what i would view as the biggest potential window opportunity theyve had 350 Million Consumers. You look at china, u. S. , europe. They needed for those on the fence consumers that were thinking about upgrading, we were doing surveys and we saw this was something that made consumers think they were not necessarily going to switch, but its something where the last thing they needed was a deterrent to get them to upgrade. This was easy to do. They needed to do it now they are moving 2018 with a little tailwind, significant upgrades do you think theres a misunderstanding about this . I read the material. When you get deep in it and try to understand what they were doing, its not clear they were trying to slow the whole thing down they wanted to make sure it didnt shut off, which is different than what weve been talking about, which is as you upgrade the operating system overtime, if you have a different operating system, it will be slower its a great point. There was a misunderstanding thats why they needed to address this with a statement. If you look at it like you talk about an iphone 6 in the smithsonian, there is, based on the power and the chip a need to continue to slow it down they needed to hit this. It speaks to why consumers are continuing to upgrade. Even with a 4 digit price tag on iphone x. They have momentum going into 2018 this has probably been one of the years they defied the skeptics more than any others in 2017 what do you make of these reports, you get the channel checks, this and that from people who are not buying these phones as much as we thought, that theyre not going to produce as many phones you saw those headlines over the past seven days. Yeah. We think about 3 million to 5 million iphone units got pulled from march into december part of that was supply demand issue. There were some soft spots in china. We think overall this is a super cycle product release that exceeds iphone 6 the next step in 2018, where they do that 200 rebbillion repatriated cash dan, the second half of 2018, you talk about tremendous momentum that currently apple has. In the second half, how do they continue that momentum once we get past repatriation and knowing what the numbers are surrounding the 10 does it come from the software and Services Business . What is the catalyst this Time Next Year . Its software services. Thats the second act here we believe that could be a 50 billion annual stream per year they have to continue to enhance. Theyll have interim releases. Lower price points in june we think its about streaming. Its about content on the video side theres an arms race youve seen it with disney, fox, apple needs to go after this market on the streaming side, further build out that software services, and some of those other growth areas to tap into the billion ios devices sold to date thats the opportunity to further monetize it. If youre advising the management of apple, would you have told them to apologize . Is that something you would recommend is a good idea yeah. I actually recommended it a few days ago what we were seeing on the survey side, talking to 20,000 consumers in surveys, this was starting to be an issue. Its not that it was going to be a significant black eye, but the longer it builds, it becomes worse of a pr issue. The last thing they needed, its because of this upgrade cycle. Its the worst timing. Thou they needed to hit it right away it was a mea culpa they did this last night which goes against cupertinos and cooks culture it was such an issue they needed to address it, part because of the misunderstanding and part because of the timing. Dan, happy new year you, too. Thanks for having me coming up, much more on the markets for this final trading day of the year and the new headaches expected to come with the new tax code in the new year first, a little wine a wine segment its 6 20 a. M. , long overdue per tekt time to talk about the prospects of this multibillion dollar industry. A toast to squawk up next. Is this a phone . 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. Some news just in from Goldman Sachs. The new tax law will result in an earnings hit of 5 billion for the current quarter, twothirds of that due to repatriation of taxes and changes in deferred tax assets people will be looking through that you see a headline like that, you see Goldman Sachs taking a 5 5 billion hit, that may seem surprising because the financials were supposed to be beneficiaries, because a lot of this is the repatriation issue and there will be a tax hit involved in that up front. But setting up for a benefit right a lot of previous Conference Calls, we heard ceos and cfos challenged on what would be the benefits or negatives surrounding tax policy the upcoming earnings Conference Calls will be important and interesting because now we have the certainty and they can ho l model out what it will look like do you care its a onetime hit. No, dont care for the onetime hit, but how you are deploying that capital you just dont want it sitting on your balance sheet. Case in point, apple increase the dividend do something with it. A long list of companies have said they will take a hit because of the tax bill in the nearterm. A lot of people will be poring through these filings. Just a couple days from ringing in the new year and that means getting ready for some parties. Now is the perfect time to talk all things wine. Joining us to do that is ra ray aisles did you choose to come in at 6 6 6 a. M. . Of course never too early to drink wine. What did you brinyou bring us some things to show where wine is going and in terms of sales. I spent part of the Holiday Season embedding myself in wine stores and working in sales to get a sense of whats going on for an article im doing people are out there buying this stuff, which is great. First off, for the Holiday Season, prisecco is going crazy still. Lowcost alternative to champagne. Yeah. 20 growth these guys do a good job the main thing is its a 15 buck alternative to what is a 35 sparkling wine is that in these glasses . No, i gave you something higherend what did you give us . I gave you guys real champagn champagne. Thank you you brought in canned wine, too. I did. I normally think of canned wine popular among the commuter set. The commuter set, camping set, beach going set, and its taking off its a small segment of the market this is from coppola. A producer theyre doing well. Doing very well whats this on the end . Im familiar with that one. This is the red blend, the red blend category la been popular. This is cool i wanted to show you guys this from a marketing point of view they have an app the app has been downloaded everything is Going Digital yes can we get the camera on this thats cool show us through the camera, if we can. Can you see that he pits the phone ovputs the the label. Now the label is talking to him through the app. Thats cool if you drink that wine, do you go blind potentially or you are transported to australia as a convict, which is who these guys all were this is a ten buck red. Perfectly tasty. Is it something you would cellar forever . No but as i was in these stores, a woman came rushing up, friends showed me this at a dinner party. I have to show all my friends. Its a cool tweak. Do you think people know the difference between dd actually, do we have extra glasses if you put prosecco in these glasses and kristal, do you think wed know i dont have time for my experiment you guys would know no question. Its typically sweet. Has it gotten drier . Its a little more restrained it will not be as dry, elegant or complex as champagne. We let you go single serve wine the industry spent millions to make it happen will this finally work i think it will work. You know how much has been wasted trying to get single serve. Tons have been wasted when i did an article on it, i couldnt keep up on the new releases on cans before i had to turn the article in. Theyre trying this is basically 275. This is interesting, because this is not chilled down as much as it might. When wine is not chilled down all the way we will do this during the commercial break years ago, we drank a little bit too much early on in the show, and the rest of the show was lively. Complicated, actually the teleprompter became complicated for us happy new year. Think of it chilled down, on a beach, you cant bring glass it starts to you see the appeal thank you for getting our new years started right. Cheers to everybody. Coming up, the fed is watching the economy and the bond market is watching the fed. Well open a playbook on treasuries and the futures of Interest Rates in 2018 will the new tax code provide a bit of resistance to the manufacturing world . Well explain in a moment. nadia white the moment a fish is pulled out from the water, its a race against time. And keeping it in the right conditions is the best way to get that fish to your plate safely. dane chauvel sometimes the product arrives, and the cold chain has been interrupted, and we need to be able to identify where in the cold chain that occurred. tom villa we took our world class network, and we develop