Sometimes people have a difficult time doing that but a few months ago the premiere said he didnt want to see a devaluing at all this year. Now down by 44 points. S p futures off by 4. 5 and nasdaq down by 10. Cac is off by one third of a percent. It didnt beat forecast reven revenue above projections. There was a 3. 5 jump and the Home Improvement retailer raising its fiscal 2015 sales and Earnings Guidance. Brian joins us in a few minutes to weigh in on the latest results but u. S. Comps were strong as well. Up almost 6 . The company has now had beaten 11 quarters in a row. So it was widely expected it was going to be a 12th and thats exactly what happened. Shares of home depot down. Pretty good run for the stock as well this year. Based on the housing data weve seen lately including yesterday, this was widely expected to be another beat quarter. As you mention, theyre giving good guidance for the year. They see same store sales up 4. 1 to 4. 9 for the year. Thats what theyre expecting. Bright spot in housing. The story continues. People going out and theyre fixing up their houses and theyre shopping at home depots and lowes. And not buying clothing. No. I remember when he was on your show. Watching some of this play out, they have not seen it in the traditional retailers this its way they have in auto sales and dining and Home Improvement. Even electronics. Youll buy your iphone before a new shirt. The bar was sort of high for home depot given what the stock has done. Maybe thats why youre not see a huge jump at least now in the premarket. Thas strg nbe aoss th board. U. S. Markets waiting on aey data point this morning. Housing starting will be released at 8 30 a. M. Eastern time. Economists are expected a rise to 1. 2 Million Units and that would follow the surge of nearly 10 . The other item dominating the markets, the price of crude, wti closing below 42 has been trading even lower this morning. Take a look right there. 41. 65. Another loss of 1 . Getting ever closer to 40. In addition to home depot, other Retail Stocks in this mornings stocks to watch. Urban outfitters Beat Estimates with its quarterly profit but its revenue and same store sales fell short of analyst forecasts. Thats raising new con serns about retailers and prospects ahead. And teen retailer expected to announce today. Six new positions will report to the president of the brand unit. Also coach upgrade to buy from holden and added to that firms franchise pick list. The turn around efforts are taking hold along with an expected overall improvement in the handbag market. Are more people buying coach handbags. They had a moment and then the downturn. Its been bad moments for at least the last year. Had some difficult tiles. So isnt it a fashion thing . Does it come back . Coach, kate spade, michael kors, all suffering through that handbag turn down. Its hard when you see 12yearolds carrying around some of those bags too. It got so popular. It was the yogi bearism. Place is way too crowded. Nobody goes there anymore. Lets talk about sprint. The latest wireless carrier to ditch the 2Year Contract. Theyre offering a lease option and will move to that model by the end of the year. Also a new iphone forever program that start with 22 a month plus the Monthly Service fee which is around 60. That will let customers upgrade to the latest iphone each year as soon as possible. Stock jumping on this announcement. Its up about 15 cents but traded from around 3. Up significantly on this news. Sprint ceo will be joining us on squawk box coming up in about an hours time at the top of the 7 00 a. M. Eastern time. Well also be asking him about his twitter war with tmobile. A lot of people have gotten involved with it. But heres some of the things. Straight outta bs. Its a play on the movie straight out of compton. They had a twitter feud after he criticized the all in plan. Plenty to talk about coming up at 7 00 a. M. Eastern time. You have to see the tweets. Its incredible. Good stuff. Its honest. Its authentic. Is it ledger . Looking at me for pronunciation is not a great idea. I think so. To your point so, many ceos are loath to say anything. Arent the rumors screaming at them after theyre tweeting like this. They probably are to which theyre saying so what. Theyre tweeting back. Lets check on the markets this morning and take a look at where futures are shaking out in this early morning. Coming up, what was an interesting day yesterday. Dow down as much as 135 points. Closed higher by 65 points. The dow would have an implied open 32. Some of that is because of whats taking place overnight in shanghai. Maybe the volatility is resuming in shanghai. S p would open lower as would the nasdaq as well. Theres the picture in europe. Possibly taking that lead from the trade over in china. Red arrows across the board from germany to greece and lets show you what happened overnight in asia. Theres the nikkei down by a third of a percent. But theres shanghai down by more than 6 . Oil is a big story. North of 41 but closer to the 40 level. Closed below 42 yesterday. Thats wti, brent, and nat gas on the decline. Treasuries of course. The ten year note yield is at 216 and the dollar, there it is, 124 versus the yen. Pound sterling 157. Gold as well today is up by its a fractional move. Did i see yesterday that miller had taken a position related to gold . I have to look that up. But i thought i heard that late yesterday afternoon. He made a huge bet on gold. Very good eyes you have there. He made a huge bet on gold during the Second Quarter. He has now finished the Second Quarter with 2. 88 million shares of the gold trust. Thats according to the filing. There you have it. There you go. As we mentioned home depot was just out with earnings moments ago. Numbers looked better than expected and raised their guidance although the stock is still under a little bit of pressure at the moment. Also walmarts results at 7 00 eastern time and new read on housing at 7 00 a. M. Eastern. Joining us to help us get ready for the trading day to come is jason pride. Greg hodges is Portfolio Manager of the hodges fund. Welcome to both of you. The numbers we see are pretty good. It tells us that the consumer is spending in certain places. What do you think about how were doing with the economy and how the consumer is feeling and how that plays out . Were in the middle of a longer economic expansion because when you look at the numbers and the underlying Economic Data we have yet to reach any sort of indication of excess built up into the system whether its debt access relative to where we have been before or excess momentum in industrial capacity spending or utilization. They have not built up meaning that theres further to go and at this point in time, markets are maybe a little bit overvalued domestically. Cheap internationally. But with that backdrop, this is still an environment where investors should be buying equities and investing in a growth manner Going Forward in the future. Do you agree with that craig . Yeah. You guys were talking about the price of oil. With it having the move like it has it has to eventually really help people. Thats a major component. We have been saying that for such a long time. We have. You make good points about clothing. People arent buying clothing but debt is a Consumer Debt is at a very low figure compared to where it was 8 or 9 years ago so thats very positive. Theyre taking the savings from the pump and paying off their credit cards and debt. Looks so. Why do you think it hasnt built into the retailer . With the exception of home depot and lows . Thats a good question. Its so competitive in the clothing space that i think that may have a little bit to do with it. The fact that they keep undercutting each other and maybe theres confusion among buyers of clothing but cars are doing well. Home building will be good Going Forward here. What makes you think that . Youre starting to finally start to see and its been nine years since weve had a real Home Building boom but theres never been a penalty for not owning a home because rates for the last 35 years have come down and were probably coming to the end of that. So at some point, there will be a penalty for not owning a home and thats probably when youll see Home Building really move up. But you look at the Home Building starts, d. R. Horton we own in the hodges fund theyre starting to make, without even any good news theyre starting to make some kind of a break out on the charts. Jason, i know its hard to argue a counter factual but where do you think we would be if it werent for the low oil prices and low prices at the pump . We keep thinking were not getting anything from it but maybe its saving us. I dont know if that has had the effect that it should have at this point in time. I think you look at it, theres low Interest Rates and low oil prices and a lot of pieces but at the same time you have this overhang of lets face it, just going into 08, 09 the consumer built up a lot of debt and we have been digging our way out of that. Thats part of the reason you see this pop up in the retail sales. Theres a little bit of tension and apprehension to do what they should do. This is one of the longest expansions on record and im saying its in the middle of the cycle because we really havent seen the growth that we normally see at this point in time. And certainly even though the jobs picture looks a lot better the mood in america is that people dont feel good about the economy. The job picture looks better. Were referring to the Unemployment Rate down by 5 but you look at the marginally employed people. Sitting in part time positions that prefer to have full time positions. The people removed from the labor force and you can see why its such a mixed picture. This is why as were looking forward to the coming rate hike cycle we think the Federal Reserve is going to take a conservative tech. Meaning not raising rates quickly. Or conservative meaning lets get off of 0. Get off of 0 but be slow about it. If theyre thinking about it normally they think with a very insurance mind set in their head. Meaning they think about where the biggest risk lies. If its to the upside with inflation or to the townside with contracting a reaction, theyre looking in saying the numbers are okay but not as good as wed like them to be. Wheres our biggest risk. Its actually tightening too fast, too quickly in the market assuming a really rapid pace. If i were them sitting around the table now theyre likely airing toward the side of trying to undersurprise the market in the economy just by an ounce. Enough to get that point across that were there. Were going to be raising rates. Were going to defend against inflation but were not doing it so fast that you guy versus to really worry that much. If thats the case, if thats what happens, whats the best thing to do with your money . Keep it in stocks . Yeah, keep it in stocks. Stocks arent expensive. Theyre very underowned and where are you going to go . But they are at the high side of historic valuations. But your typical Industrial Company is a high evaluation but you can find a lot of good Growth Companies you can buy at their growth rate. 10, 12, 15 times earnings and thats a cheap multiple. You have to frame this right. The market is sitting historically expensive relative to where it normally would sit throughout an entire market cycle but typically this stage of a market cycle the market will sit a little bit expensive because theres needs to be that natural tension of higher valuations against the counter balance of on going economic groethd in order to keep things in balance and in check. Thats a natural tension that should exist and probably where the market should sit and should continue to climb that wave, climb that wall over the next couple of years until we find the economic period. Thank you for coming in today. A quick reminder for you. Go to cnbc. Com to track the picks in real time and read their exclusive analysis. Up next, home depot rolling out quarterly results. Minutes ago the stock is on the move this morning. We break down the numbers straight ahead. But first, this day in history. American apparel warning it may not have enough money to stay in business for the next 12 months. Saying its financial situation raising doubts that it can continue as a going concern. Analysts think the Company May File for chapter 11 bankruptcy protection which would allow it to shed leases for underperforming stores. When you see comments like that from a company the question is are they running out of money because they basically need to tell certain debitors youre not getting all the money you deserve. That has been a troubled company for sometime. For some time. Wheres dov charney when you need him. Where is he . Where is he . I dont even dare at this hour right now. Still dark out. Petco has public plans once again. Nearly nine years after tpc and Leonard Green acquired the company the pet retailer is planning an ipo expected to raise 100 million. They have 1400 locations around the country and had revenue of 4 billion in the latest fiscal year. Home depot just out with upbeat quarterly results. Joining us now on the squawk newsline to discuss is brian, Senior Equity Research analyst. Welcome this morning. I guess this was expecting. Housing story continues to be good. Any surprises here . No, its very much an expected report. A very good report but i think the key here is and the conversations i have been having with our clients for the past several weeks or so there was very much a view that sales could be soft here and what were seeing in the numbers is theyre quite good. The key number is the 5. 7 comp. I suspect theyll talk about business strengthening through the quarter. Stocks down premarket. Look it hit a fresh high yesterday. Maybe thats not a surprise either. Were you expecting this kind of a move . What does it say about where we are now in the home depot story that maybe the bar has just continued to get higher and higher because the results have been better and better. Thats a fair assessment. But i wouldnt read too much into this early move in the stock. I think as investors digest this report theyre going to come away with the view that look, this is another very solid announcement from a very Solid Company well positioned and the stock continues to grind higher. They seem to be moving even further into the business of servicing contractors. Is that where were going with home depot . Thats a big push now and theres a lot of runway for them. So im sure theyll talk about that more on the Conference Call today as well. Theres a real opportunity for them to better penetrate that pro customer and were starting to see some success of that already. What does it say about how we should view lowes. Is it out this week or is that next . Tomorrow morning. Okay. So tomorrow morning. Does this mean that lowes is going to be strong . I would think the bar is a little bit lower for lowes, yeah . Typically what weve seen with lowes and what i expect, i put a report out to our clients saying lowes will be good but not as good as home depot. Thats been the trend for awhile. I dont see any reason for that to change this quarter. Whats disappointing though . How would you characterize whats happening with the markets reaction . Its basically a knee jerk reaction. As im digging through this report this morning theres nothing disappointing. The point made a second ago was a good one. Home depot had a big move higher so you probably just have a bit of a knee jerk reaction here. If you look at the headlines they didnt beat eps. Its probably a knee jerk reaction but overall a good quarter. Why does home depot always out perform lowes . Do you think their management is that much better . Well, its a good question and ill keep the answer short. Look, i think the easy answer is home depot is better run. Weve seen that for years now. I think ive written a lot about this which is an interesting point that i think that lows from a real estate perspective is not as well positioned as home depot. And as the Housing Market continues to recover home depot is in a better perspective to capture that business. That should shift as the Housing Market continues to recover and some of these stores may not be as productive but could be some of the best performers. No knock on lowes performance either. Theyre neck and neck since last fall. I always like to make fun of us on wall street because its a percentage point difference in the comps. But if you look at these versus the vast majority of retailers out there you have two of the best companies out there performing for awhile. Thank you so much. When we come back this morning is mcdonalds the nations top place for breakfast . As the fast food giant gets ready to offer the egg mcmuffin all day long. And Million Dollar homes with a special added attraction. Right now though take a look at yesterdays s p 500 winners and losers. If your purse is starting to look more like a tissue box. You may be muddling through allergies. Try zyrtec® for powerful allergy relief. And zyrtec® is different than claritin®. Because it starts working faster on the first day you take it. Zyrtec®. Muddle no more™. Good morning, everybody. If you are in new york and just waking up, look out. Make sure you bring your umbrella today. Its been a little humid and rainy. Thats what were taking a look at as we sit in the chairs this morning. It was exciting. Storms. Get things going. You can see the pictures of times square. Were in the chairs taking a look at the stories that caught our attention this morning and we are getting into football season. It is gearing up. We are watching the camps and watching whats going on getting ready for not only the nfl but also College Football and word from the National LaborRelations Board that it will not be taking jurisdiction of the case where t