Big news out of the United Nations, nikki haley announcing a cut in next years budget after the un voted to call for donald trump to withdraw his plans Israeli Embassy to jerusalem. Varney and company starts right now. Charles lets look at futures, under pressure all morning, fractionally better. Lets bring in zach hour. Everybody wants to know 205k in 2017. In 2017, i dont see why not, certainly lets call it by valentines day a couple points, next year will be a strong year for the stock market, the first half of next year especially. I am worried about a blow off topic for the market sometime next year but that is all the more reason. Charles you could argue this year, last year, the year before, pretty long market, people are calling for it. Prices are not crazy, prices are okay, we are introducing new money into this economy with conditions tight. What i worry about is a faster rise in Interest Rate than we expect giving more competition. The cd rates, why am i taking this risk in the stock market. What i saw in the last two weeks were utility stocks so seems to me confidence the market will outperform yield, utilities, the utility sector came on strong the last couple weeks. You get this well the fact that is selfsustaining for a while. People feel wealthy because of the stock market and the Housing Market and economic numbers support the market but at some point it doesnt last forever and valuations get stretched. Charles they are reasonable but above historic averages. And Holiday Shopping excluding automobiles from november 1st, ecommerce does phenomenal driving those gains rising 18. 1 so this gets to your Point Success begat success, the Virtuous Cycle the fed couldnt manufacture coming on by itself. People are feeling well with rising share prices, full employment, one thing you dont want to be is a retail value investor. If you share store chains in your portfolio and they are not doing great but will turn things around. Charles coming back app stores up huge from this 2017 low, may seize up, are these the bounces you would sell into and lick your wounds . Remember the conditions are perfect right now so operations should be perfect. Gap and maisie turn things around for the long term, they have deep challenges. Charles consumer income and spending through the roof at the expense of savings, yellow flag, red flag anything for you at this point . I am not just personal by the way, we might run the trillion dollar deficit. I am a believer in making a when the sun is shining and times are good, we ought to be saving more money, they spend when times are flush like this. Charles relatively low. Wall street journal reporting corporations could repatriate as much as 400 billion in cash, want to bring in peter morici, economics professor at the university of maryland, talking capital spending, minimum wage, when is it going to work out . The tax bill requires investment but a lot of that goes into the stock buybacks. That is not the evil thing liberals would have us believe. Giving the money back to the stockholders is where it belongs, they will spend or invest it someplace where cash is needed. A lot will get recycled into the market but stocks where the tax is needed. This is fine. We ought to pay people for holding stocks, dividends are not great for folks because they pay higher taxes than capital gains. Stock buybacks are where you want to see it. Charles fedex reported their earnings, i thought the thing that stood out, the ceo saying, and the pension fund. This is what you dont hear from the Mainstream Media, people are going to benefit this. And the windfall of companies that take money fund them for so many people. Recycling, if they put it into their pension fund they dont just put cash into the pension fund, they buy stocks and bonds. That is a good thing that will be good for the market. It will be good for keeping the price of capital low so the firms that need cash can get it and use it and grow and expand, start up and the rest. It is not a bad thing when a company that is doing well gives money to the shareholders because they are investors. Charles we should begin with the premise that it is their money. This whole idea that money is transferred from the poor to the rich with his tax bill with a big headline over the Christmas Holiday was so despicable and dishonest, let me ask you the 400 billion number, i studied the bush tax cuts, it was like 340 billion two decades ago. It seems low to me. I think it is low. People are underestimating what is going to happen but wont come in a rush. They have money to pay the taxes, that goes into the federal treasury but federal treasury is using that money for the taxcut, comes back to all of us. It is freed up, and putatively taxed, that will come back over a number of years. I am not looking for a huge rush, a sensational article where problems the tax cuts, driving the dollar up and the alarmist piece, wont do that. 400 billion is not that much money in the Foreign Exchange market over the course of the year and a lot will come back over time. Yields invested over affair, and securities of some kind. Charles new york governor andrew cuomo, allowing taxpayers to postpone the pain of the new federal tax overhaul by paying next years local property taxes before january 1st. And take advantage of it because those taxes will be deductible this year but not next year but the irs could reverse that. The irs doesnt like people on their taxes paying multiple years, paying expenses that cover multiple years. And subscription and have it count that year. It would be interesting to see if this is wildly done, if the irs starts to push back. It charles if you have a chance to look at the tax bill, and what profession is, it went through, historic, to what degree should help the economy and the stock market . It should boost investment by 15 . And a percentage point. Each 10th of a percentage point, even without the taxcut we were looking at profits the next year, there were 10 higher. The s p is not overvalued unless you go to the shiller index which is subscribed. If you look at a 25 year average it is 25 profit to earnings ratio. That is where we were a year ago. You put on top of that a taxcut and you have a hot market. My feeling is the market will do well next year unless there is some unseen event uri and no one else can see. But looks like a strong growth year for the economy and a strong stock market. Charles thank you, appreciate your time this morning. A jetblue plane skidded off the taxiway in boston. A flight from savannah, georgia to boston logan airport. When it hit the runway it skidded off the runway, did a 180, its fun 180 , came to rest in between two runways, passengers all evacuated safely, went to the terminal, judges give a perfect 10. Charles too bad. Speaking of planes, a passenger on a United Airlines flight says the flight crew kicked her out of her firstclass seat to give it to democratic congresswoman Sheila Jackson lee. That woman is demanding an apology. More details coming up. Big cuts to the United Nations, Ambassador Nikki Haley living up to her promise slashing next years budget by 285 million. She called it a step in the right direction. More varney right after this. See thats funny, i thought you traded options. Im not really a wall street guy. Whats the hesitation . Eh, it just feels too complicated, you know . Well sure, at first, but jj can help you with that. Jj, will you break it down for this gentleman . Hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade i just finished months of chemo. But i dont want to talk about months. I want to talk about years. Treatments have gotten better, so. Im hoping for good years ahead. Thats thanks to Research Funded by the American Cancer Society. The same folks giving me free rides to treatments, insurance advice,and a place to stay during chemo. I need that stuff like you dont know. And now that you do, please give. Call 18004164357 today. Your contributions to the American Cancer Society fund valuable research but thats just the beginning. A cancer diagnosis can kick off years of challenge. And thats where your donation truly shines. You help us fund free rides to treatment. A live 24 7 help line, free lodging near treatment centers, and even efforts to expand access to insurance. So, please donate today at cancer. Org and help attack cancer from every angle. Charles quick look at apple shares. And billion dollar market have, negative articles, we will talk about that later, at t announcing thousands of layoffs, mostly landline and a little older Legacy Service sector jobs but that stock is under criticism with a little pressure and united apologizing to a passenger that says a us representative got her seat. The passengers name is jean marie simon, she claims she was bumped from her firstclass sees, given a voucher, put into coach with extra Sheila Jackson lee got the firstclass seat. United says miss simon canceled her flight on december 18th because of a weather delay and when she canceled her seat, jackson lee who was on the upgrade list and first on it got bumped up. They apologize to miss simon, gave her a 500 travel voucher, she took to twitter on the 23rd and is complaining she talked about lowlevel united employee didnt do the right thing, hasnt apologized. Charles a lot of traction over the weekends on twitter, congress men and women have a lot of perks. They get to park in other places, we will see. That is nothing worse than being booked in first class and getting kicked out of it. I didnt know that happened. Charles donald trump cutting funding to the United Nations after the is really vote. Come on in, pete, living up to the promise. I find it amazing. I thought not only nikki haleys dance but a lot of countries in the world stepping up in their own way, some just didnt vote, this was a longtime coming. He puts his money where his mouth is, does what he said he was going to do, the moving of the capital to the and snubbed. And he tweeted a year ago today a social club, and bending sovereignty and pulling money away the pursestrings, and less and less relevant and passes resolutions for international, leftist and globalists feel good about themselves. The charles a way to make it relevant. And two world wars, we should talk before we shoot at each other. And set up by winners of that war, and they team up against the freedom loving democracies, and form our league of democracies, Work Together and fund our own interests as opposed to giving into third world dictator and antiamerican, antiisraeli and antisemitic, we should not give in to that. Charles paid 22 of the budget, 100 of enforcement effectively on full faith and credit. Charles no gorilla outfit, powder blue, i hate to say it. They never pushed back anywhere they had been, genocide and atrocities continued, everybody take them seriously. Send them to iraq and syria to take on isis. Charles you an army vet. Talked about fighting isis. And esprit they corps. And understand the mission, what would you grade him . Morning in the military and the biggest thing you want to have is understanding your commander in chief has your back, appreciates what youre doing and your mission is not politics or posturing but American Security and National Interests and this president has refocused on that at every turn and his critics say it is america alone, my phone is ringing onset like an amateur, but he is saying it is America First and american leadership. That happened on the battlefield, no one can take credit for that other than untying the hand of our operators. Charles and the general, letting generals fight the war. And call into dc because approval 12 fighters on the ground, can the white house approve an airstrike. That is a decision that should be made by a captain or kernel or general, not a 25yearold at the National Security council at the white house. When you change the dynamic you can fight and win wars which is why the caliphate is no more. How we follow through in syria is another question. Until you defeat the caliphate you dont get that next chapter in the president of theirs credit for that. Charles merry christmas. We have a big name, out with a warning on bit coin. Charlie monger, Warren Buffetts righthand man says he is not touching it and is telling investors to, quote, avoid it like the plague. More varney after this. Charles a quick look at futures, equity futures under pressure, s p has waffled in and out of positive territory. Warren buffetts righthand man charlie monger says avoid bit coin, quote, like the plague. Do you agree . You should avoid the plague more but you should avoid bit coin too. There is no underlying fundamental value, it is your speculative fervor but going higher and much higher, i have seen crazy before but it can get crazier. Charles a painting sold for 450 million, ingredients cost 2. Where is the Intrinsic Value. Where does they go up . Where does the Intrinsic Value for gold, dollar, other than full faith and credit . I know why it exists. It is not a currency, because you cant have something change ten times in the course of a year and call that something for spending and something that will take over for the dollar, when the end times come and currency go bust you are not going to want a currency that requires a fast internet connection, i dont quite know what bit coin is others in whipping around, it is working out well. My sense is it will end badly. Charles square talked about overstocked for a couple years. Trading on futures trading, Goldman Sachs setting up a Trading Floor so wall street is taking this seriously and so are major retailers, we are taking it seriously as well. Wall street taking a piece coming and going. That is why goldman is going to trade on it but you would be a fool to by anyone, it goes up and down, youre paying too much, why would you use it is currently . That is the only reason it may not be a currency now but ultimately people bought things, you always hear about dirty things and bad things you can do with it but one of these things where enough people believe so much distrust, government and fiat Currency Printing dollars, fandom dollars, we can have an emergency and the fed could print fresh dollars, where is the value there . Technology underlying this has durable value. Going down the road, how we handle currencies, to look at the dollar figure on bit coin now, no cash flow, no dividends, to say this is the right number is twice this, there is no way to come up with that value or what we have with currency. Charles that went home and kicked my coin, we will be right back, more varney next. Charles opening bell in less than one minute. Equity futures across major indices, not major pressure, the post anticlimactic bill, and obviously a little more volatility, i think not a lot of folks in there, the pending who gets a hold of this market, in a similar direction, dont be surprised if buyers show up if the market is a little wobbly but it is not going to be that bad. The s p might be higher. Lets go, the bill is ringing, lets check big board and populate the dow 30. A little mix, caterpillar has been a monster stock, dupont, industrial names, on the opposite end the biggest loser, apple, report out of taiwan less than expected, the s p, lets get a check on that, the s p was up and down, back and forth all morning, down very fractionally. We will see what happens, it is up from the initial opening, lets check nasdaq, a lot of rotation in the last months out of the big tech names, nasdaq has been wobbly. Elite over the dow, just about gone and that sending more pressure than other indexes. It is all about retail, a lot of good stories about retail, a pretty Good Shopping season, walmart, macys, clinking to life, sears 3. 75, not sure what will happen at best buy under fair amount of pressure. The online version, amazon, ebay, overstock, the bit coin play, two days of pressure, one of my favorite names getting hammered because amazon selling Furniture Online and the stock has been very resilient in the last week. The wall street journal reporting corporations, from abroad because of this tax bill, adam shapiro, mike murphy, 400 billion, where is that money going to go . Capital spending, buybacks, dividends, anything to the employees . Yes yes yes. You will the stock buybacks, dividends increased which is good for the part of the country that owns stocks but you have already seen it where Certain Companies announce money going back to their workers. And you have 400 billion to the us, it is a positive acrosstheboard. Charles i think the number is low. Dont know where they came up with 400 billion because 340 billion came back under bush so seems like a relatively low number which might not be bad to have lower expectations but donald trump said 4 trillion. President bush was 300 some billion dollars that came back so so much money overseas is a bigger number. Charles lets look at the big board, the dow 25,000. Bring it on. Charles that is one big session. You know this, the trend is your friend, any selloffs being but you mentioned in the opening you have seen rotation from one sector to another, we dont see money out of the market so 20,000 will come. Charles we have codelco, one of my big bets for next year is crude oil particularly the permian basin, in the last couple weeks crude oil stocks have done better than crude oil but they were behind from the massive rebound earlier. If we continue what are the sectors