Roadmap begins with President Trump morking north koreas nukes and mega chinese deal block, and shares of intel are down reports the i. T. Industry is bracing for news of a major security flaw affecting intel chips. It did not take long for stocks to make history in 18, that is d nasdaq closed above 7,000 for first time best day since october 27th. Whats going on with tech . I think that the profit taking ended i believe that there was a huge amount of money that left tech and went over to industrials and a large part because the gains were so great, also because there was a feeling that you could select your lot because of the new tax code, it made sense and turn out it didnt matter. Whats really happening here, carl, it is just an unprecedented amount of research as possible. I sent i sent a list today, theres 35 upgrades and what happened is that nobody seemed to realize that nothing is built in every one of these notes is about how tax reform, tax reform or unbelievable Holiday Season netflix unbelievable Holiday Season and amazon unbelievable Holiday Season its an era of good feelings. I was trying to keep a list as well of upgrades. Utx ulta, dicks, wells, anthem and thats not all. All of these ulta, as a random one, why do they like it . The competition is decreased, thats the death star amazon and theyve got a lot ofcash after tax reform you know what . This is one i know the stock was up by ten points for year end but this is an example of a stock that could be up 30. It could be up 30 based on tax reform and yet so many people carl, in the last month said its all built in its all built in. I tell the analysts who are upgrading and going nuts today for the restaurant stocks, for the retailers, for the down and out industrials, the down and out teches, it is just incredible to me. Utx from 124 to 160. I will see you that and talk about a Waste Management number, where they upped it about 40 . Honestly, im seeing upgrades im stunned. Im stunned. Seeing people upgrade this is United Technologies, this isnt some Small Cap Stock for heavens sake. Im getting a lot of those where its like pvh. 158 to 168 158 to 165 wells went nuts today. Piper went nuts today. Merrill went nuts today. Yep. Rbc. Financials less so, jim well get the big banks a week from friday. True. Theres been talk about what happened to lone growth in the last few weeks of 17. 1 , if thats going to color the quarter. I do think loan growth in the states that got hit by the change in sales in the state taxes, that was a lot of business was new jersey, new york, california i mean california is one fifth of the country i mean, i think youre trying to figure out if i do this, if i buy a house, am i going to be down 10 immediately when you buy im sorry im stunned by these upgrades. When you buy United Technologies, goes up 10 . You cant live in United Technologies but you know what, people maybe it can united technology. The big engine. Otis is doing well. You can live in an elevator, at least it goes up. Largely about margin pressure at pratt and whitney. I know greg hayes, im sure he says this is even better than i thought. Honestly, he is he is everything is working for otis everything is working for hvac and pratt and whitney. But the note is saying, this is the best thing since sliced bread. Does your playbook pivot two degrees, five degrees, at all . Theres a restaurant note out today by sun trust basically says these trucks are going to have cash flow gains of 20 . This is for restaurants, buy shake shack and dave and busters, i pivot because i thought a lot of stocks up 6 on tax reform, maybe could be up 15 and 20 . Fabulous interview on squawk, down 10 maybe get this big lets use united technology, maybe it goes to 140, 145 then goes back to 137. Everybody will sell because its scary. I say how much when cvs, general mills, what did they think cheerios were going to cause you to have a heart attack to 63, when do they say buy . 67 you know whats selling . Peanut butter chocolate cheerios i thought millennials hated that stuff. They dont have kids, just have instagram. On byron, he did say his surprise list widely washed on wall street, 10 correction. But still ending the year he thinks at 3,000. I thought he was magnificent. Now the great thing about byrons picks and i followed byron for 30 years, i can say i followed him for seven years but hes been around longer than that when hes wrong, it doesnt cost you anything when hes right, you can make a fortune. I remember fighting with him on intel in 1992. I said, you know, the surprise is going to be up. He is tremendous most people dont have game when they get older, the guy comes in and you know what hes like . Hes like brady. Supernaturally gifted at this age. When he gets to be 45, hell have another five rings, its ridiculous hes brady hes the brady of our business. He had a good call last year on the markets and on crude and now he sees crude going to 80. Four hikes from the fed, tenyear near four democrat democrats taking back the house and senate. If everybody gets 1,000, theres an acquisition today the one of the worst performers in the s p, South Carolina utility, dominion, very fine company, buys South Carolina they give everybody a g. Everybody has been hurt gets a g. Comcast gets a g but im a private contractor i should qualify for whatever they give you. We did get american and southwest joining the list of thousand dollar bonuses. I thought it was only buybacks and dividends 1,000 is a lot of money for a lot of people. Suddenly they come to work and get 1,000 i think those people arent going to vote democrat. Aeon has a Payroll Survey out in which they say they are not companies are still not looking at broad not expecting to give broadbased wage hikes this year, despite these very nice round of bonuses. I think the company will be shamed into doing it i like that survey i mean, love them. But you know what, the s p 500 companies in the s p and they are all being shamed into giving everyone 1,000 lets say you know, im watching today, we had they give target stock rather than 1,000. But everybody gets it South Carolina, i got hired a new guy to help me here. And hes from South Carolina i mean, i think he should get a g. By the way thats 1,000 to the millennials. Do they know what a saw buck is . Do they know anything other than instagram . C note. They dont know what a c note is they probably thing its like fa, a long long way to go. A series of geopolitical tweets by the president , including one regarding north korea. North korea leader kim jongun stated the Nuclear Button on his desk is on at all times and someone from his depleted and food starved regime inform him that i too have a Nuclear Button but it is a much bigger and more power than one than his and my button works why is the market shrugging this off . Real news i think that the president has a great time and hes absolutely right, we have more of a nuclear arsenal. But you know, we it is a little strange it is a little strange we dont think its meant to be funny its not funny. Not funny at all. We have a division in south korea. We have a lot of soldiers there i wish he would say we want to pull our soldiers out if theres a problem. I dont want our soldiers killed that should be his next tweet. Hes going to list a number of journalists, maybe i dont want to be on that list, the enemies list. Hes been all over the map on twitter, whether its north korea, palestine, air safety, obviously the press. Im raising numbers with twitter. Its done well. Heres pakistan, not only on aid to pakistan i know my wife was on the border when the tweet came ouxt i told her get inland. Have you seen my wife . Shes traveling the world right now. Shes on instagram but i would like to see her here i want her in brooklyn and shes in jadpur. Please help me here, editor in chief. I mean, shes in places that theyve never seen someone with blonde hair before you dont even have blonde hair. Amazing part of the world. Wow. I know. When we come back, as we said earlier, intel shares are down on this report alleging a secure flaw in its chips. Well talk about that and take another look at the premarket as the nasdaq hits a record along with the s p auto sales on the way in a few moments as well. More squawk on the street in a minute lot of Tech Companies are reporting today. And, hows it looking . I dont know. Theres so many opinions out there, its hard to make sense of it all. Well, victor, do you have something for him . Check this out. Td ameritrade aggregates thousands of earnings estimates into a single data point. That way you can keep your eyes on the big picture. Huh. Feel better . Much better. Yeah, me too. Wow, you really did a number on this thing. Sorry about that. Thats alright. I got a box of em. Thousands of opinions. One estimate. The earnings tool from td ameritrade. Your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. Intel is down, stating the companys processors made in the last decade might have a massive security flaw according to an online publication it has force d significant redesigns of windows and that similar operators systems may also need an update. Keep an eye on that. Were looking to get to auto sales as well. Were going to get numbers out in the next few moments globally probably the best year ever. I know that phil gave you projections and hes never bet against phil the gm declines seem overdone. Stock to be terrible seems overdone spend a lot of money on the future phil has been covering that very well. They have upgrades based on what they call a seat at the table regarding mobility. But it still sells at five, six times earnings, micron sells four and five times earnings but gm could raise the dividend a lot. I wish they would because i think people really want income right now. The stock ver rise zon gm could offer a very good dividend and thats what the market needs right now. Phil earlier said that even though were likely to see total sales down from last year, barn burner of the year, still probably one of the top five. I think that car max is going to be good i covered that last night. I feel that some of those stocks represent great value, buying back a lot of stock. But you know what, the fact is that people are going to say, down year versus last year and dont want to own when they have so many stocks up because of tax reform. Lets get to ford phil lebeau is in chicago. A rise of 0. 9 . The edmunds. Com estimate, decline of 2 . These are comparisons with december of 2016, a huge month the fact were not seeing block buster numbers does not mean a whole lot there. Interesting notes, f series up 9. 3 we talked trucks and suvs, best year since 2005, they sold just shy of 900,000 f series pickup trucks and record december for suv sales and by the way, when it comes to their inventory levels, they came down about five days now down to 68 day supply which is much closer to where they want to be, really spot on with where the automakers want to be in terms of supply. Well get to gm in a few minutes. Well come back to you for that, phil. Remember mark fields . He spent a lot of money upgrading the f150 and got canned i have a i bought an f 350 which is the super duty. The thing is like take it through the woods like a sherman tank the thing people dont realize, that is what fields spent a lot of time on and wanted them to spend billions on on cars that are selfdriving. He spent billions on trucks that people love. Those are high margins, ford seems cheap if the number is worldwide. Fields and overhaulman similarly squeezed out. Dealer network all together, rationalized the whole business model. Hes just off in the sunset. I hope hes at the Rancho Valencia playing tennis. Like both of those guys. Nobody cares i know because they are rich, remember what lennon said the rich are unhappy, its their own fault. There i go quoting lennon, i have a picture of my lennonon my phone. Its a selfie, i look more like him every day because i have to lose weight from that vacation alibabas Financial Services affiliate ended the agreement to buy Payment ServicesCompany Money gram after objections by federal regulators, they were unable to garner the approval of the committee which reviews acquisitions by foreign entities for National Security risks. I thought this was punishment i mean, what, money order is National Security . I got real news, right, its block but maybe there are some reasons why we dont want this deal i think also china, get the message, china go help get us through to north korea. This is jack ma. He represents china. And i thnk he would say jack ma is a politician but as a businessman, he i think must sense, wait a second, maybe we got to stop dumping steel. Because when we do these we cant get anything done. Maybe we should stop dirtingy the air and take all of what alcoa has. You think its an effective shot across the bow. Yeah, money gram. I think one of the things the president is trying to say, were going to do 232 on steel and make it a National Defense issue. Notice the Steel Companies continue to go up. This is the shot across the bow ive been waiting for. He wants to shut down little guy. Its the chinese in charge because they keep giving him food money gram may translate into the chinese saying he thinks were paper tigers, maybe we are. Were going to watch to see trump is trumping them. When we come back, well get cramers mad dash and count down to the opening bell and look at the premarket on this wednesday morning. Mosqwk on the street continues in just a moment dad dad dad can you drive me to jessicas house . Uuughhh this is what our version of Financial Planning looks like. Tomorrow is important, but so is making the most of the house before theyre out of the house. Spend you life living. Todays the day. Find an advisor at northwesternmutual. Com. At ally, we offer low rates on home loans. But if thats not enough, we offer our price match guarantee too. And if thats not enough. We should move. Our home team will help you every step of the way. Still not enough . Its smaller than id like. Well help you finance your dream home. Its perfect. Oh, was this built on an ancient Burial Ground . Okay. Then well have her cleanse your house of evil spirits. Well do anything, spiritual chatter seriously anything to help you get your home. Ally. Do it right. Lets get cramers mad dash. We have our pick of the litter which one . Steve millers song is wrong, take the money and invest. I love steve, fabulous guy five reasons to be long oracle a Morgan Stanley note. Upgrade too of ibm this is like, hey, look at me, look at me, im good it does talk about the positives of the last quarter. In my conversations with mark, it is very clear that last quarter wasnt nearly as bad as the market said. People didnt like the cloud of disappointment but database is in full swing. Still pretty good. Maybe some of the cloud problems are behind them. But repatriation, likely to drive share repurchases. Now, they do a bond deal and have a lot of cash overseas and bring it back. Whats really amazing here, this is an incredibly cheap stock as is ibm. People keep saying theres no cheap stocks no, its the opposite. There are many cheap stocks valued this stock was pretax reform this is tax reform so i just say, wait a second, why hate why put the hate on orac oracle i recognize the upgrade, im with larry ellie son for the moment it was knocked down yesterday because fears of amazon and sales force couldnt get that confirmed though. Rbcs target on ibm goes too 180 and both say not just valuation but either the database cycle in this case or main frame cycle. I couldnt believe no one talked about the main frame cycle. The margins are big but Warren Buffett was a seller and because that trumped everything. Who wants to buy from Warren Buffett. Maybe hes done. More importantly, ibm is cheap and if they deliver, the stock could be couple of big cap upgrades right there. Well get the opening bell in a couple of minutes. Dont go away. Thank you so much. Thank you so were a go . Yes we got a yes what does that mean for purchasing . Purchase. Lets do this. Got it. Book the flights hai si si ya ya ya what does that mean for us . We can get stuff. Whats it mean for shipping . Ship the goods. Youre a go you got the green light. That means go oh, yeah. Start saying yes to your companys best ideas. Were gonna hit our launch date scream thank you goodbye let us help with money and knowhow, so you can get business done. American express open. Youre watching cnbc squawk on the street. The opening bell in a couple of minutes, watching the tech rally that began the year for the nasdaq budget is going to be the topic of discussion on the hill as we are still facing this january 19th shutdown. I feel like thats been historically a bad reason to sell if you sell, you may have to buy it back, which is not something i want people to do. In the meantime, we havent talked oil rally, which is happening. Natural gas, dont get suckeed in hainesville was a natural shale people left for dead rewe burn it because we have no place to put it. And we dont have enough export yet. Dominion, which is exporting soon, bought that scana, big nuclear problems but be aware before you go nuts on the natural gas stocks because its so cold, stick with oil. 180 million americans in below freezing temps and i dont know if you saw yesterday, google searches for the words froze rn pipes are at a threeyear high. Home depot, which is down yesterday, is a buy. I saw a downgrade of masco and thats kitchen and bath. But home depots hd supply downgraded because its been so strong i question that downgrade. I like the pipe business bay the way, cop