Finding money in garbage, yes, trash. You wont believe the big names lining up behind this trade. Hi, everybody. Tyler is out. Mannedy is on the half time report this week. So youre stuck with us. Were getting a modest rally. You have three things going for you. You have oil on the upside. Its behaving. You have a modest time to rally and a europe rally. Thats all you need going into the close. Modest expansion of new highs. Ill show you in a couple minute. Thats been there all throughout the day. The volume predictably on the light side. Lowest volume dave the year yesterday. We have a broad swath of sectors on the upside here. I would have liked to see energy and materials. The losers on the year leading. Thats not the case. Tech, health care. Energy up is. Consumer name, remember, value outperformed growth throughout the year. So kelloggs, kimberly clark, smuker, new highs for them. People are debate wlg this is going to happen in 2016 or not. And, of course, consumer name have done well besides these, travel stocks are new highs. Royal caribbean and carnival. Theyve had a great year. We should have the most beaten up names. We had nice starts. You can see they fell down. This is a warning sign here. These are the names that ought to be having decent rallies today. As good as soccer is, we cant keep up with europe. Were going country to country here looking fwoefrt returns so far this year. I like to call it global citizen. Yeah. Thats what we are now these days, right . Thats fair. Interestingly enough, the ininvestor discussion, im sure you would agree, has become increasingly more global in macrogiven the china growth concerns, that made a very interesting global backdrop. Lets start with europe. Thanks to qe, the weaker currency environment and Lower Energy Prices, that helped european stocks outperform the u. S. In 2015. The big standouts are italy and germany. You can see up 13 and 7 . Ireland has also been a big winner up about 29 right behind us right here. By the way, Fastest Growing economy in europe, 7 gdp. Helped by the bailout. Also strict reforms. You can also see that hungary is the best performing Global Market so far in 2015. Youre looking skeptical. My people, the irish, every time they count them out, they come back. Be proud of them. Theyre doing well. Unemployment also improved. Employment also improved. Hungary, the best performing Global Market up 40 thanks to strict measures implemented to stimulate the economy. But lets take a look at asia. The story gets more interesting. Of course, fears of the fed rate hike and also further evidence of a slowdown in china resulted in this selloff in a lot of the asian markets, specifically malaysia and indonesia. They rely heavily on chinese demand. You can see so far down 5 and 13 so far in 2015. But the big surprise, we were discussing this yesterday has been india. Where it is . Right here. Down 5 . Morgan stanley, ubs, deutsche bank, they were expecting this big rally in indian stocks this year. We didnt get it. Investors are saying valuation is a big concern and also modi overpromising. You can see the index is down 5 . Big standout though this year, the price of china, despite the volatility in that market over the summer, the price devaluation in august showing the composite still up 10 this year making it one of the best performing markets across the globe. If you dig deeper, shangen up is. The china haters have been right for a couple months but wrong for the year. Its just been a crazy, volatile year in china. Volatility will only increase next year according to economists i speak to. Unlike the other modi, you underpromise and overdeliver. Thank you so much. That is a compliment. Every time. Thank you. You did leave something out. You forgot to mention jamaica. Really . The stock market up is 80 this year. There are two big reasons. Fe beer and dolphins, but not together. I hope not together. Poor dolphins. One exchange standout is [ inaudible ] is that a jamaican brewer . Yeah. They make red stripe. Recently fold into the hin kin beer empire. There is a dolphin sector. So were serious about beer and dolphins. Jumping out of the water this year. Its been a whale of an investment. A dolphin marine park say a jamaican operator called dolphin cove. Lets keep this in mind. The market cap of the jamaican stock market is about 5 billion. Thats it. Its a frontier market which hopes to grow into an he merging market. 80 is still 80 . But keep nind, the Frontier Markets are frontier because theyre small. They tend to be liquid and if you own something there and you have to sell it, sometimes it is hard to sell and can you lose a lot more than beer and dolphins. You have been warned. All right. We have a news alert in the bond market. The five year note up is for option. Rick santelli, what does it look like . It doesnt look good, melissa. I initially gave it a d minus. I felt generous. It is a holiday week. I gave it a d. That reflects the very weak demand as for the following metrics. It was 35 billion fiveyear notes. The yielded option, 1. 785. That is the highest yield in an option since september of 14. The metrics, just 1. 875. The highest yield i saw going into the final few seconds of the one issued trade is 1. 77. Higher yield, lower price. Never a good combination. 2. 32 chasing every dollars worth securities available. That is weaker since july of 09. 52. 5 on indirects, below the 59. 10 average. 11 was the direct bidders. Thats the only glimmer versus the 7 ten auction average. So d. Tomorrow we, of course, have the final 90 billion in supply in the form of 29 billion seven year notes and hopefully they go better than the twos and fives thus far. Weve seen yeeields popup a little bit. Thank you. So the s p 500 on tap to end the year just slightly in the green. So are there better opportunities in emerging markets as we head into 2016 . On set is heather loomistide. Welcome back. Good to see you. Thank you. Great to see you. Happy new year. Happy new year to you. So for 2016, youre looking at an okay return overall . Yeah, okay return. I would say within the equity space to your point on emerging markets, we see selective opportunities there. I dont think its going to be as easy as just picking a country, a region, a currency. I think youre going to have to really get under the hood, look for those individual corporations with good Earnings Growth and its going to be an environment where active management will pay off. What are some of the overall themes going to 2016 . Theres a lot of talk on street about reversion to the mean trades. Meaning going the opposite direction of where the trades have been for 2015. So oil is better. Right. Dollar is weaker. Whats what should we expect . Honestly, on that point, i think youre going to really need to look to Market Neutral longshort strategies. There can you capitalize upon big shifts in momentum. I agree with you. There are some trades which are crowded. Which are contentists and at that point especially when valuations are fair, to even in some case highly valued, very susceptible to changes in momentum. Once a year we get to make predictions. One of my predictions for 2014 was that for five or ten years mexico would be one of the best investments in the world. Of course, im just guessing. Youre the expert. Do you agree . Yes. I think mexico is a good place for investments, situated in the emerging markets. They send to sell off when they do. Its one of the more liquid names that can you actually sell. And, yet, you can see very diverging fund men fund menamenl koechlt were looking at the alternative space and infrastructure within mexico which we find promising. It is tied to north america and the u. S. Economy. It fluctuates along with the u. S. Dollar. Are we to believe that the u. S. Economy is going to be much stronger next year and if the returns on the u. S. Stock market is between 5 and 6 , should xbe expect similar for mexico . I think similar but a boost. It has been versus the u. S. Which has been a favorite of International Markets, recipient of dollars during times of tumult, mexico has not received that. They should perform a little better. What is your biggest i dont want to say surprise. If you think about it, its not going to surprise. But maybe as Goldman Sachs calls it, a gray swan. What should investors be kind of worried about . It may not happen but it could . Right. I it this biggest question my investors are thinking about and these are billionaires in the Family Office space. Theyre thinking where do we go within fixed income . They made their money. Theyre looking to invest it in a safe spot. Theyre looking to keep their money. Absolutely. So where do they go . The mattress . Where do you go. Fixed income should do well because europe continues to have a bid. Were actually saying think about different places to put your money instead of fixed income that are still safe, that still have a high yield return to you and so some of those places are outside of both equities and fixed income altogether in the alternative space. So were thinking about renewable energy. Where you can enter into, you know, contracts with stable Investment Grade utilities. Like a toll road in mexico . Invest in Something Like that. The infrastructure space. So think of wind, solar, things which dont depend on Economic Conditions which is the sunshining and the wind blowing. Those are things that investors are thinking about going into 16 because they have stable returns, cash flows and they also, to the extent some people with considerable wealth are trying to tie investment orientation to the philanthropic orientation. This does a good job of doing so during the lifetime of their investments. Thank you for joining us. Thank you. Happy new year. As we note at the top of the show, natural gas rallying big time again today. Prices now up 25 in just one week. Is this the hot bed for winter or has it completely passed you by already, slow poke . Plus, wayfair, mens warehouse, not the yeah, tanking. I thought they were going to help us look good. Either way, were going to give you a couple retail predictions for the coming year. Youre watching cnbc and we are first in business worldwide. Welcome back to power lunch. Triumph group is soaring. They finally ended the ceo search naming ratheon executive to lead the company. Dupont is higher, cutting 1700 jobs in the home state of delaware in early 2016. The cuts part of duponts merger with dow chemical. Now to seema for a market flash. Qual come nearing session highs up over 3 this as the chipmaker enlters a new license agreement with two chinese firms. The stock is helping lift the s p 500 tech sector high cher by the way is the best performing sector in todays trade. Brian . All right. The deadly Winter Weather that dumped snow on much of the southwest now threatening the northeast. Heres the weather channels chris warren with more. Looking at a few travel issues today. Overall, things will be improving in the coming days for most areas. Lets start off right now with a look at what were going to see the issues. Its going to be mainly the northern locations in the northeast. Of course, low clouds and rain can and have brought some travel delays through the air. Through some of the big airports in the northeast. Otherwise, its going to be some of the higher elevations, colder spots where theres going to be snow. But in the coming days, we are going to be watching for some rain. But snow is the story here in the northeast. Several inches again. Mainly to the north, mainly out of some of the biggest cities. As you look at tomorrow at the rain, now were seeing the rain in the midatlantic all the way to the south. Watch out for the threat of thunderstorms. Thunderstorms roll through, we do know that can reduce visibility with that very heavy rain and cause ponlding on the roadways. Mostly quiet on thursday with the exception, of course, again of some rain throughout parts of the southeast. Just be careful out there on the roads. All right. The Winter Weather reeking a bit of havoc on holiday travel. More than 600 flights across america have been canceled. More than 300 have been delayed due to large storm system moving to the east coast. Of the 80 r 0805 cancellations, were at chicago. We call that a normal day at newark airport. You would. Nat gas is continuing gains. It up is 24 in just a week. Energy trader at the nymex has been trading nat gas for more than 20 years. Great to have you with us. Is this mostly Short Covering . Today is the january contract going off the board that has little bit to do it with much as you said, december 18th, you made a low of 168. Thats a low number. It is weather driven. As soon as you have a change if the forecast, it picks its head up, especially starting off at levels this low. They had data out showing that the net short positions were extremely high. And so im wonldering if part of it is fueled by Short Covering, how much Short Covering could there be . Could that offset if the temperatures go back up, for instance . Were way above the fiveyear average in terms of the storage. But from what im hearing, theres a lot of production off right now, too, which is making it sort of bullish. But this animal is really, really driven by weather. So if you see any kind of weather where it stays cold for a long time and theyre also saying that january 10th to january 20th is going to be unusually cold and if it stays that way, it could really pick its head up. Its just the way nat gas trades. Whether you say pick the head up, how high . How high does the head go . From a technical perspective, we go through todays highs. You could see another four cents above that. Okay. Well see about. That thank you so much for joining us. The numbers are still coming in. It is turning out to be a relatively decent Holiday Shopping season both in stores and online. And check out consumer discreti discretionary. That is the best performer up 9 . The question is this. This year is already gone. What is ahead for retail next year . Will anybody ever sell anything again . Three big predictions for 2016 coming up. Welcome back on power lunch. Take a look at. This a rally on our hands plus were at session highs at this moment. The Dow Jones Industrial average up 189 points. 1. 1 is the gain. The s p 500 up a full percent. The nasdaq up by 1. 2 being fueled by huge gains in biotech. Small caps doing nicely today. Russell 2000 up. 7 . Lets get a check of the bond market. Rick santelli is at the cme with a followthrough. Rick . Wow. It is a soft auction. If you look at intraday of five year note yields, we popped up a bit. Lets look at the yield curve quickly. Twos are up seven basis points. Fives are up five basis points on the day. Tens are up six. 30s are up eight basis points. If you look a a chart starting in june of fiveyear notes, can you see were at the second highest yield of the year going to 178 and change which was the 10th of june. Even the ten year responded on this intraday chart. Yields moving higher. Light volume. A bit of a nervous trade at the mom. Back to you. All right. Rick, thank you. So as the year draws to a close, cnbc, thats us, hi, melissa. Hi. Is breaking out next years playbook, looking at ways you can make money in the next year. Courtney reagan right here, laying out her predictions for retail in the coming year in a minute. But first, lets see how she faired with her picks for this year. How did do you . My favorite part. Actually, i think i did pretty well. So, go ahead. This is you. Courtney predicted that sears would stay in business. Got that right. But that the retail woehr not see a real resurgence. She was right. Sears stuck around but the retailer shows no signs of resurgence. In fact, it continues to close stores. Also predict it might close in 2016. That is still anging out there. Courtney also predicted that ceo positions at several retailers would remain unfilled for long periods of time. So im going to say i was 95 right on this one. Thats good. I called out American Eagle and abercrombie specificly. American eagle went almost two years with an interim ceo. They never really found what i would call the perfect candidate for replacement and gave the interim ceo the total title earlier this month. But abercrombie, still no ceo as Mike Jeffreys left a long time ago. It has been. Lastly, courtney predicted that the chief marketing officer would become a more Important Role in all retailers as they focus on target and personalized shopping offers. Well, that one is a little hard to measure. Right. So the jury i guess is still out on the overall prediction. But now lets see what courtney is predicting for retail next year. If retailers think the unusually warm winter is problematic, watch out for spring. Weather experts predict as el nino turns into laen into yashgs the warm winter will morph into a cold spring leave retailers again mismatched to the forecast. Bad for margins, good for deal seeking shoppers. Some retails have already taken the plunge and raised wages for hourly employees. Its only a matter of time before competitors will have to follow suit. And while some argue it helps retail by putting more money into americans pockets, its a big expense for retailers, bites into earnings and adds downward pressure to share prices. Even though retail stock valuations contracted this year, the sector has been largely left out of the record year for global m a leaving consolidation a strong possibility in 2016. Count in Company Calls out hanes brands, hbc and signet as top picks for value creating m a next year. So its been a very interesting year for retail. It will continue to be. I think were going to keep seeing more and more changes, much more so than weve seen in years past. So well see exactly what happens with retail. Lets see if my predictions hold up. I think theyre pretty good predictions. You did well in 2010. In 2015. Better than i did. Wait will you see my predictions, wrong, wrong, wrong. I love that shot. Courtneys head and my shoulder. We came back from break, it was my shoulder. Courtney, thank you. Thank you. All right. Take a look at stocks right now. Were at session highs. Lets get the latest from the nasdaq which is the biggest winner of the three major indices so far. Absolutely. You said it. The biggest winner today, up 1. 2 . Up about 7. 5 for the year today. Its been outperforming the other two major averages. The nasdaq 100 up higher for the