The highest since may 2011. The breadth in europe is very, very strong. Our road map begins with the markets. Stocks are set to start at another high since the dow is working on its best years since 96. Flights were deeply discounted at delta yesterday, including a crosscountry trip to hawaii for only 68. Delta saying it will honor fares. And shares of twitter have been an absolute tear until today. The stocks falling nearly 3 in the premarket. Has the blue bird flown too far too fast . Markets are set to open at another record high, the dow having its strongest sixday streak in three years. The transports, the s p, the russell also joining the party, logging some more record highs. Guys, we had our 50th record on the dow yesterday and the nasdaq is shooting for its 13th friday higher. So theres just if youre a lover of the candy that are market statistics, theres a bunch to play with today. There certainly is. I find interesting the article in the journal today that says this year the Retail Investors will have returned 13 of the money taken out of the market in the previous six years the individual investors at home watching this now is still extremely skeptical. That may be because the risk reward of your own money is different from the professional investors. Theres a really good look in the journal as to why mom and pop have not joined in. Looking at inflows, first year since 05, 50d billion in to equity funds. Thats not as much as left the funds last year. I just said that. I know. Anecdotally im hearing from folks on twitter saying im kicking myself for not jumping in when things were less certain. And the potential risk for being in a bond fund, thats something people may be feeling yet again, certainly if theyre more on the shorter end of things. I should say the longer end of things with this 10year. Ill be very curious to see how the adjustment goes in terms of a higher rate environment, breaching 3 again. We did see it once before during the course of the year. When it came in may, though, on the first talk of taper, there was a lot of quick adjustments both in the equities markets, emerging markets got crushed, if you recall. It will be interesting to see if we are now all ready for that as we head into 2014. Ben greenhouse has a note out today that says higher rates go with a recovery, dont get too worried about it. Thats the key. Is there going to be gdp growth more than 1. 5 to 2 . Im old enough to know what recoveries look like. In a country of this size you should be getting 10 or 15 announcement as day. That is what a normal recovery looks like. Lets get more on the record setting rally. Lets bring in david cass and thanks to you both for being here this morning. We breached 3 , were certainly looking for more as we head into next year and we get more taper. Is it going to impact the ability of the equity markets to continue to go higher . Eventually it will but not the first part. We think rates can move up another 100 basis points before the stock market really would start to worry. If you look at normal recovery, the first 1 , 2 3 of Interest Rates are higher. If rates were to go from 5 to 7 , it would really start to impact starts and would have an adverse effect on the economy and on the stock market. We dont foresee that in the first six to nine months from last year. With the s p up almost 30 right now and say how in the world can we expect to come anywhere near that or should we have a right to expect any kind of a gain next year . We do expect a gain next year. This years rally was at least partly based on the fundamentals. Weve seen strong are Economic Growth and weve seen good Earnings Growth and we expect both to improve in 2014. That will push the market high person. David, how central to your view of where the market goes and what the recovery looks like and the decisions that ceos make, whether they decide not to buy back their own stock but to actually invets in jobs and growth. At what point will they look at the tenyear and say im worried were not going to get top line growth in this environment. Ceos have been worried about everything from the government to health care in the last 12 to 18 months. We finally think theres an allclear sign with the government coming up with a twoyear budget deal. We think ceos will start to invest with a more meaningful way and will lead to better labor markets and labor spending. We do think theyre going to continue to buy back stock and raise the dividend. Having said all those good things, were looking for an historic average meantype return of 9 to 11 . Its surely not going to be as good as this last year but it should be a positive year. Do expect a lot of volatility. If youre an investor, wait and buy into the weakness rather than chase the Fourth Quarter rally. Copper is at an eightmonth high. Theres a nice chart today floating around that the number of miles different by merps, the buggest yeartoyear bounce since the deception. We know just over the course of developing an average that it will eventually. Where is that going to come from . It certainly will and nobody knows and thats why investors do need to be prepared for the market. But overall there are fundamental signs of stronger growth and thats why, as david just suggested, you want to buy any of those dips because the underlying trends are actually very positive. All right. Well leave it there of course as we head into the new year, thanks to both of you. Meantime, lucky flyers took advantage of a computer glitch on thursday that caused some delta flights to sell for mistakenly low prices. Delta says it will honor those fares. Carey, good morning. Reporter its the glitch to end all glitches here, carl. Folks were online yesterday from 9 30 eastern to around noon. They couldnt believe their eyes. This wasnt just on delta. Com, it was on priceline. They saw prices that are actually cheaper than the taxes you usually pay on a ticket. Heres an example. Flying from jfk to puerto rico, usually 308, somebody snagged a ticket to 77. Jfk to vegas, purchased for 81. And amy chee was online looking to go from indianapolis to honolulu. She saw the price of 70 and was like what . She decided for whatever reason to click over to the first class ticket and saw it for 88. Needless to say she booked those tickets as fast as she could. The round trip ubl costs usua costs 3,396. She said she feels like she committed grand larceny. This has happened before. The number of people who had the potential to take advantage of this one was much large are. And so everybody was sort of like spreading the word as fast as they could. I asked Delta Airlines, first of all, how many tickets did you sell . They wont say at these ridiculously low prices. They say they will honor all the tickets. Is this some sort of Stealth Marketing campaign . They assure me this was a costly, unplanned mistake, guys. Let me just ask you, what is the tradeoff for management here . I believe the department of transpore rules say if a flight is actually confirmed and the computer says in front of you its confirmed you have to honor that price. What was the decision by management . Because they could have said we wont honor them, well pay the department of transport fines. Do we have any idea what the orders of magnitude might be on that . Since we dont know how many tickets they sold, we dont know the balance. At the end of the day, you have the pr nightmare that would have been far worse. Especially when united made the mistake, they did honor all of those who made the purchases with the glitch. If united did it, it puts the industry in play that everybody now sort of has to go along with the play that if one airline makes the mistake, all the airlines will go along with it. Im sure there will be an airline that makes a mistake and decide it will not honor the tickets it and will be a big bruising battle. Kerry, good to see you. Should check the web sites more often. Interesting how you live and die by technology. Target has shown that and delta airline. Not the last time well see a mistake like this. No. The good news is the Airline Stocks have had a pretty good year. The Airline Industry has had an incredible year, earning its capital for the first time perhaps ever and not to mention the big deal that got completed with am and u. S. Air. Many of those who received the stock are extraordinarily happy. And well see if oil basis itself in 2014. Thats going to be one thing to watch regarding the sector for sure. This pass month has been sweet for the home of the tweet. How should you play that stock if youre playing it at all . Thats coming up here. Implied open 34. Since the taper, the dow has risen every single day. A lot more squawk on the street live from post 9 in a moment. [ bagpipes and drums playing over ] transitions to rock ] make it happen with the allnew fidelity active trader pro. Its one more innovative reason serious investors are choosing fidelity. Get 200 free trades when you open an account. Every weekend worked, every idea sold. You deserve a cadillac, the Fastest Growing fullline luxury brand in the United States. Including the all new 2014 cadillac cts, motor trends 2014 car of the year. Get the best offers of the season on our Award Winning products. Like a 2014 ats and srx. Hurry in, offers end january 2nd. Twitter shares twitter shares are lower after its recent tear. Shares of up more than 180 . Is it profit taking or has the share seen its peak . He raised his price target to 43. Front page. It was the lead yesterday and its the lead of the party today. Its incredible. When you look at twitter, forward earnings multiple 385 times next 12 months earnings. You compare that to facebook, its at 24, amazon at 28, apple at 8. But any ordinary stretch of rational mathematical thinking, its valuation doesnt make sense but the market is where it is. Scott, did you ever waiver at the ride from the 30s . No, we havent wavered. I heard your intro music tough enough. I was wondering if that referred to me. This has been confounding. You were referencing four 12month earnings. We dont see earnings until 2015. There are a lot of reasons for why the stock has worked over the last couple of weeks. We see a lot of favorable supply demand constructs but we expect those to start dissipating pretty notably as the year starts. Those who own it, why havent they sold into the strength . Theres in notion because highflying momentum stocks have fallen and come back, theres a feeling that theyre going to be invincib invincible. Linkedin, there are certain lockups around those shares. To scotts point, the numbers i was talking about were ebidta. Thats right. There are no profits expected for this company for some time. The difference between the people this is a great trade. The difference between those chasing this trade and you is youve got to have some sort of logical construct of what it might be, justify where you are rather than putting your own money into it. Is there a possibility further down the line that there will be new revelations that will justify this type of price . Or is it out of all orders of magnitude . Simon, in our opinion and obviously dennis referred to some of the valuation constructs, this is trading look, for example, there was an article in the wall street journal yesterday talking about the market capitalization of twitter being in excess of 40 billion. We think that was using a wrong calculation for diluted shares. This is a stock trading at a valuation of well over 50 billion with no earnings. There could be new Revenue Streams and product enhancements that could make the fundamentals look better, but at the end of the day we have thought and we continue to think that the valuation is just initially stretched, then excessive. It seems like now were approaching some type of mania. And when that happens, you know, you just got to kind of wait and see what happens. Stay out of the way. And dont be stupid. Doesnt short the stock. For me its somewhat reminiscent of what i watched every day from my desk on the old squawk box with joe kernan in 98 and 99. It didnt stop for quite some time. It doesnt necessarily mean there isnt going to be a buyer for those shares more than there are sellers today or tomorrow. Perhaps it when they actually start earning money, can you ring that bell. It very hard to go into a market like this and say, a, im doing well i think an interesting thought experiment is to compare it to yahoo . If you back out the alibaba value inside yahoo twitter is valued far, far more than yahoo right now. What would you rather own, twitter or yahoo . Id probably say twitter over yahoo backing out ali baba. Are we in for a rash of downgrades . A lot of the below the line items like taxes very cloudy. A lot of discrepancy across the street. Once they report, thats going to have to sort of solidify to some degree. Weve seen this movie before it seems. To your point, once next year begins next week, youre going to see Capital Gains being harvest harvested, youre going to see performance not as much of an importance for Institutional Investors and you might even see a secondary. All those are going to contribute additional supply and maybe less demand, we think pulling the stock lower. What a story its been at when we come back, what is top on ash cart in. And the dow is shooting for its best high. Back in a minute. Ses. To help you realize a better tomorrow. From the families of aig, happy holidays. [ male announcer ] the parking lot helps by letting us know whos coming. The carts keep everyone on the right track. The power tools introduce themselves. All the bits and bulbs keep themselves stocked. And the doors even handle the checkout so we can work on that thing thats stuck in the thing. [ female announcer ] today, cisco is connecting the internet of everything. So everyone goes home happy. [ female announcer ] announcer at scottrade, our tcexactly how they want. Tg. With scottrades online banking, i get one view of my bank and brokerage accounts with one login. To easily move my money when i need to. Plus, when i call my local scottrade office, i can talk to someone who knows how i trade. Because i dont trade like everybody. I trade like me. Im with scottrade. announcer scottradeproud to be ranked best overall client experience. The market the market opens in seven minutes time. Looks like we are going to set another record on the dow. Art cashin joins us here. Good morning. Good morning. Repeatedly you said watch what happens with the tenyear yield. Now were above 3 and still the market is rising. What does that man . It means several things. Finally good news is good news after all. Maybe the economy is taking hold and people are believing it and that would be a good reason for rates to rise or yields to rise. The other one might be that were seeing skeleton crews on trading desks and things arent quite meshing to the as they normally would. Well know better next week. Whats your hunch . My hunch is that its a little bit of both and im concerned greatly about what impact it may have on mortgage refinancing. Thats taken a hit already and a few notches up in Mortgage Rates may slow things down. Theres craziness in kiev. But thats the product of qe, isnt it . Isnt that what weve seen through last year . That volatility. Its the underpinning of the central bank. It is the underpinning of the central bank. They were going to have a strike on syria after the chemical raid, it didnt happen. We were going to have problems in iran. Now were in negotiations. So theres kind of a rationality put here. I hope it doesnt work out the other way. I wonder if we underestimate the effect loaf raids ha low the ability to refinance at extraordinarily low levels and therefore have very little Interest Rate payments, interest payments. All of those ways, i dont know whether thats being fully appreciated by investors. I think youre absolutely right, there is a great degree of financial engineering. Because rates are low, because they can buy back shares very cheaply and some are borrowing to buy back shares. So that can be quite a surprise as we get into next year. But for now lets hope there are 52 cards in a deck. Lets see if we can do 52 record closes. We got 50 under our belt, art. Thanks a lot. Dows up six straight. Will it hit lucky number seven in the opening bell is just minutes away. Announcer now access live announmine was earned live orbiting the moon in 1971. Afghanistan in 2009. On the u. S. S. Saratoga in 1982. 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The dow going for its best yearly gain. Fridays have been good for the nasdaq in recent weeks. If the nasdaq is up today, that makes it 13 straight fridays higher, all of that with the tenyear hitting. 302 this morning. Thats the highest since july of 2011. Theres the opening bell and a look at the s p at the top of your screen. Down here at the big board, charity navigator, an organization that evaluates charities with ratings on 7,000 nonprofits and over at the nasdaq, operation once in a lifetime, a nonprofit helping Wounded Soldiers and veterans. A lot of the green you might see today at least in the morning part of the session might be driven by europe, guys, which is playing a bit of catchup having been closed yesterday. You pointed out the advanced decline line over there. 95 of top stocks in europe are playing catchup because they are closed yesterday. Whats interesting here, they may be buying twitter. In europe theyre actually buying great banks. Those are the main gainers so far. A b