Was slowing down old devices what theyre doing to win back favor and what it means for the stock. First, stocks rallying to kick off the new year. The nasdaq and s p 500 both closing at record highs with nasdaq closing above 7k for the first time ever. It does feel a bit like 2017, when tech crushed the competition, soaring 37 what do you do in this new year . Do you stick with what was working, namely technology, guy . I think you do, mel, and happy new year i think you do stay the course people want to play the laggards, but stay with what works and what has worked. Dan nathan has been on this. Intel, big move to the upside, valuation is reasonable. Micron had that huge move from basically the low 30s up to 50, retraced back to 40, had a decent day today valuation of micron makes sense, dram pricing is still heavy. Texas instruments, great story, theyre in great places, but now 24 times forward earnings, i think its gotten expensive. Technology works, just be aware of what youre buying before you dive in feet first faang had a great day, biotech had a great day. Where do you go in 2018 . Stay with tech. If you look at the fiveyear performance, large cap tech has outperformed the rest of the sectors. You stay with tech you buy Consumer Discretionary you buy financials regulation, not seeing any new regulation yes, the yield curve is problematic for the financials but i believe if you want growth, you stay with technology companies. Apple, alibaba, s. T. A. B. , thats the chinese Tech Companies, faang and s. T. A. B. You have the u. S. Dollar coming off, i know tim will talk about the good news out of europe there thats good for Big Cap Technology since they get a lot of their earnings overseas a flatter yield curve, again, if youre looking for growth, youve got to go to Something Like a google. That to me would be my bet at this point in time you go right back to google. Do you remember in 2017, we were kicking off the trading year, you said to be in technology because its idiosyncratic growth, a defensive play here we are, were in a period of global synchronized growth, and were still saying technology as you saw, brian preferred to me talking about it so now i have to talk about it, the pmis were unbelievable. German pmi, the exporters were highest in 20 years, the numbers are staggering these guys have all talked about really interesting things, but the resource trade to me is now really coming into its own weve talked in the last couple of weeks about how ag has lagged parts of the trade that are also very interesting include cement, some of the industrial metals. For all the talk of steel to this point, you really have had a phenomenal crescendo of good news including department of commerce pushing back on china who is dumping steel to vietnam and bringing it back over here you have more demand coming out of china for hrc billets youre seeing prices in steel going higher thats really what the sector needed heres the ultimate would you rather love this game for 2018 you can actually be in both, but materials or technology here, guy . Wouldnt you rather, materials or technology. She wants you to choose you have to choose. You can have a weighting in both i think power pitch is that what we call that thing fast pitch. We power pitched u. S. Steel when it was a 22 stock. They get closer to 38 today huge move to the upside. Freeport, a couple of weeks ago, on a day that copper got obliterated, its higher ever since. If you ask me technology or materials, i say materials same to you i can see a world where materials perform, but i want to stick with tech. How about you can i have both no oh, oh. Materials, i think only because i feel like its just starting to gain steam and tech has been going for quite a long time. If its looking for a place that people are going to start putting new money to work, potentially it could be materials. The thing about materials, the tenyear pushed back today, were at 246, 7. The bund has now rallied over the last four sessions, a significant move across europe weve only begun to fight. A major mesquite ecb pointing out they couldnt extend their bond buying. They announced this back in october, they cut their purchases in half. People dont realize european bond yields are going higher when they go higher, theyll bring bond yields higher here. This is great for resources. You want to see this in the commodity space. Thats another reason i think this trade outperformancs. If you like materials, should you like industrials one day doesnt make a pattern, it was up 3 today, it outperformed a lot of the faang names today. Youll have days when ge is up 3 , 4 . I think its going to languish between 17 and 19. Quite frankly, the problems theyve made of themselves over the last ten years do not get rectified in a quarter or two quarters not enough . Not necessarily, because ge had, as i said, its own issues but look at caterpillar, john deere. We havent talked about infrastructure, which is something well probably be arguing about fairly soon, 2018. Cat tractor, big company, makes those big yellow tractors, thats the one you want to be in obviously people are more focused on reversion to the mean trade today with tech and with retail names but it should be Going Forward thats where you should see the names coming out and spiking higher also this global thing, youre seeing it in shipping rates. Karen did a great job i know, youre not as good looking not nearly. Golar was a pitch on her fast pitch. Shipping rates are going a lot higher if you look at the mlp space and the energy space, infrastructure within the energy space, its finally rallying, oil prices have stabilized. My only issue with the i want to buy energy i want to buy it in a bad way. The only problem is every time you see the commodity, weve seen that gas rally 17 . I can see where ep companies that are reliant on the gas space rally. Why cant these Companies Rally . I think they have been rallying being scared to buy now is probably appropriate, because its moved we had a massive move. The stocks havent really moved. You had a major breakout in oih and in halliburton and schlumberger its not bad. Sure, but when i go back to the xle over the last five years, its up 2 . Thats the hesitation, where the subsector of the stocks in the last three months its up 18 you could have found bargains in refiners or other places. Large integrated names have not participated lets move on lets we can ask john about oil well bring in one of wall streets biggest 2018 bulls, john, happy new year thank you, happy new year to you as well. You stay to stick with whats working. They pay you the big bucks to come out and say stick whats working . You also have opportunity to tweak as we go forward but right now, our favorite sectors, and im glad to hear what you all were talking about, materials, industrials, technology, Consumer Discretionary and health care. Thats five sectors of the s p 500 were rating outperform. Relating to technology, were slightly underweight tech, its 23, 24 of the s p 500 weighting. Thats a lot of exposure unless youre just dedicated to technology and technology can be volatile with the semis, they were popular last year. Towards the end they sold, they did a little bit of profit taking now theyre coming back up we think theres other opportunities. And technology is about a good 21, 22 weighting, so not terribly underweight what goes to the overweight the overweights, industrials, materials, Consumer Discretionary. Because its spread out amongst the rest yes, it is. And they link up nicely together, because materials and industrials can benefit from increases in technology. The more tech you put in there, sensors and all kinds of equipment to make the stuff more make the equipment more efficiently run. Low cost similarly, Consumer DiscretionaryNeeds Technology like mad, whether theyre doing bricks or mortar and then health care is a natural for that so im at home, im not doing anything, or im just contributing more to see what i have, and when do i worry . When do i say, you know what, something out there has changed in this market and i do need to start either taking profits or move to another sector theres a variety of things one is the market has proven since march 9th of 2009 that its always looking for a catalyst that will tell it where its next direction is. So one thing that worries me, if we would have a decline, some catalyst that would warrant a 4, 5, 6 decline, the Market Participants might get scared, okay, because theyve gotten so used to this last year, if you remember, there would be days that the s p was off like 8 10ths of a percent, we have a selloff here. There was no selloff, its down 8 10ths of a percent i remember the dow dropping through 28 in a day and i lived through all the other stuff that happened since then, luckily but the thing is, it would be a catalyst that would shake the market, any complacency that the market has in it the lucky thing is the fundamentally a fundamentals are good. Internationals are growing its not paradise, trees dont grow to the sky, valuations will be questioned. But theres rotation in this market that weve seen a lot of that is due to technology, inexpensive trading. You can really move in this thing. Just be prepared we like financials, but right now the yield curve tells us its just a market weight. John, good to see you, happy new year thank you what are you trading today . So its interesting, i saw the homebuilders were actually weak today you would expect them to continue to be strong, because what has worked, should have worked today, they didnt. Im looking to maybe add to my homebuilders on a little bit of weakness if that persists. Well talk energy, but clearly, the big cap integrated names have not exploded to the upside the move from 75 to 85 has been a decent move for that size a company. Although its not a Technology Stock with the beta they have, i still think these big cap energy names that tim has talked about for a long time still work here. Going back to the tech sector, ibm, i like what theyre doing, theyve got big data, theyre changing the company traded off 140 from last year, has held up that low its a bull call. Its an interesting one. I was pretty active again, i added sombrero, this brazilian aircraft company, and bought some other resources, sold a little bit more steel, trees dont grow to the sky. As good as the news is here, this is a great trade. It was a day to be active i think in some of this rotation because frankly i think theres more to go a news alert on Southwest Airlines lets get to phil lebeau for the latest reporter southwest joining the growing list of companies announcing bonuses plus reinvestment in the business on the bonus side the company will be awarding all of its employees at 1,000 bonus. Also the company says it will be converting options for 40 boeing 737 max 8 airplanes. They will be converting those options over the next couple of years into firm orders, also throwing in 5 million in charitable donations again, southwest like other companies weve heard about over the last week or so saying, you know what, were going to mark the passage of this law by making an investment in our employees and in our product on the air or in the air, melissa bill, thanks. Phil lebeau. Southwest airlines putting its money where its mouth is in terms of benefits here contrast that to Goldman Sachs who said tax reform wont be great for them. You look at southwest and you have to start wondering, a 1,000 bonus, when does that start to filter into wage growth and if you want to say whats one thing that can derail this rally, you start to get that wage growth and see inflation. Im more excited about converting the plane options into firm orders thats a real statement of confidence these guys have reason to have confidence. I think Spirit Airlines looks interesting on valuation relative to peers and growth and efficiency the airlines have had a very turbulent of all the sectors, they were the one you could have traded the hardest in 2017 coming up, amazon coming off a huge year, up nearly 60 the ecommerce giant isnt showing any signs of slowing down plus move over, oprah. Weight watchers has a new social media czar, d. J khaled and what regulations could mean for this space much more fast money after this daniel jacob for every hour that youre idling in your car, youre sending about half a gallon of gasoline up in the air. That amounts to about 10 pounds of Carbon Dioxide every week. malo hutson growth is good, but when it starts impacting our quality of air and quality of life, thats a problem. So forwardthinking cities like sacramento are investing in streets that are smarter and greener. The solution was right under our feet. Asphalt. Or to be more precise, intelligent asphalt. By embedding sensors into the pavement, as well as installing cameras on traffic lights, we will be able to analyze the flow of traffic. Then that data runs across our network, and we use it to optimize the timing of lights, so that travel times are shorter. Who knew asphalt could help save the environment . Tcan lead toof plenty of questions. Fortunately, theres a place to get the answers, for them and for you. Find articles, tips and tools from experts and others who have been in your place. The Caregiving Resource Center at aarp. Org caregiving. 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. Disney and netflix shares surging, analysts say both companies are well positioned to dominate the streaming world netflixs shares are up 62 while disney is up 6 . Would you rather netflix or disney definitely disney ive been an outspoken critic of netflix. This is now up in my face because i thought that chart was breaking down last year. This upgrade tells you whats happened in the sector weve put a floor underneath i think people are able to start to see the future when theyre able to control distribution what multiple do you put on disney its not 16. I think its closer to 18. Therefore i think 18, 19 times you can be long the stock even after this move. The analysts, they both got upgraded to the same ratings but it seemed like they were favoring netflix and its subscription model they say disneys Subscription Service wont be a threat to netflix. I hear what hes saying 18 times forward earnings for disney in the environment they find themselves in, is rich. It would be twice competitors such as viacom they deserve a premium valuation. Netflix said theres a 40 chance that apple buys netflix im not sure where they got 40 from and im not sure the shareholders will be thrilled about that it will add fuel to the fire if were playing the game again i wasnt, but no one asked you to set up a game Netflix Netflix outperformed ten to one disney i think they both can go up. Netflix is definitely the beta chaser dont shake your head like that same old high jinx in 2018, nothing has changed. Weight watchers jumping today, the stock now up 300 in the past year, yes, 300 , as the Company Signs on dj khaled as social media ambassador. The hit making music producer is known as the king of snapchat. Hes got nearly 4 million followers on twitter well share his progress as he completes a Weight WatchersFreestyle Program which launched just last month. 3 to 4 million followers or views. When did you start following dj early it was when him and bieber were together, because Justin Bieber follows me, of course, were somewhat buddies it was when him and bieber collaborated on grateful, the album that dropped in 2017 dropped i would be grateful if you stopped. That looks delicious, actually not bad for Weight Watchers kind of surprised. But they didnt just hes on a journey right they chose him because its a different demographic. Younger, male. He lost a couple of pounds over vacation. Did you lose a couple of pounds . I did my man dj, if he shaved that beard he would drop ten pounds that thing is gnarly people are living in that thing. I think it looks fine i get it, oprah, the whole thing. Its not a cheap stock, Weight Watchers i get this is the sweet spot new years resolutions and all that lose weight, look like tim with steely blue eyes, it aint happening, folks if you enjoy the move in Weight Watchers, i would at least take some money off the table if you look seasonality, by the end of january, Weight Watchers stock is lower when do you sell interest in the name as well theyre definitely the elephant in the space if you look at elephant . Thats an interesting pound for pound, theyre the winner here we go. A lot of opportunities. All right take it away still ahead, apples apology tour continues of the stock rallying, helping to push the nasdaq to new record highs. How the smartphone giant is making up for slowing down its old iphones. Im melissa lee. Youre watching cnbc, first in business worldwide well tell you what has investors so excited about amazon plus thats what one top Securities Law says regulators are about to do to the crypto trade. I hell be here to explain how bad it could get much more fast money after the break. Thats aeps road to the future. And the International Brotherhood of electrical workers helped make that happen. The ibews Outstanding Union professionals have the skills and training to get the job done right. Thats good for our customers and for our bottom line. Ibew members are our power professionals. They should be yours as well. Bitcoin making a comeback as its rivals gain ground bob pisani is at the nyse. Hi, bob. Reporter hello, melissa. Bitcoin is rebounding big time it took off on heavy volume around 1 00 p. M. Eastern time, up 12 on the day. Ethereum, its rival, is also strong early on but it sold off a