Thats still the case. Reaction to the north korean overflight also the euro is on fire. They dont want that. Tenyear yield. Look at that 2. 10. Jamie dimon must be thinking how am i going to make that how am i going to get my Net Interest Margin . Home prices is just out. Report for june shows prices up 5. 8 compared to a year earlier. Up 5. 8 that was a bit more than had been anticipated lets get to our road map this morning. It starts with that north korean provocation. A new missile test that flew right over the main japanese islands. President trump says, quote, all options are on the table plus, best buy is moving lower although, the numbers cautionary on the call, saying this is not the new normal. Were going to get into it, of course, here, and explain what exactly is going on of course, well be following the continued catastrophic flooding paralyzing Southeast Texas. Tropical storm harvey now one of the most destructive storms in the nations history and the rain, as youll see when we go to sully, still falling. Still falling. Futures, as you saw, pointing to what would be a tripledigit dow loss at the open south korea launch aid Ballistic Missile over japan an emergency meeting being held today. Japanese Prime Minister shinzo abe spoke with President Trump after the launch threatening and destabilizing actions only increase the north korean regimes isolation in the region and among all nations of the world. All options are on the table its not going to be the first time that we talk about the Market Reaction to a provocation like this, jim they seem to come with some frequency. The question, i think, the rising question is, what, if anything, will the Trump Administration choose to do in responding and that group of options, many of the experts say, none of them are particularly appetizing. No silver bullet. I havent heard a single one that i think anybody particul particularly mattis, believes is palatable. Europe down more in part because the euro is at 1. 20. Japan, oddly reserve currency. Although their country might be under attack look, i dont know what when you send a missile over in their airspace and you dont know whats right they actually briefly issued a call for people to seek shelter. Right. As they didnt necessarily know it would just pass over of course, it did. I think 1700 miles was i think, obviously, we make a commitment to defend japan so, whatever happens, an attack on japan is considered to be an attack on us i would point out, david, that there is genuine chaos in many parts of what i regard the market if the euro is really strong, then theoretically, our International Companies should be doing better. Instead our International Company stocks are the most hard hit, which is amazing. So often in keeping with the month of august. Why is the euro so strong i think its so strong in part, because we cant keep it down anymore. Its so strong we have to put that in relative terms what do you mean, its so strong, people say i think the dollar is weak. One of the reasons that i think the dollar is weak is because theyre of a belief that you know, by the way, lets not forget, we still have a budget we have a debt ceiling. Youve been saying from the beginning this was going to be an issue now, literally, with all this happening our president is going to houston, which is right. Hes going to texas. September is next week. Its coming up. End of september, we start got to start cutting out essential Government Services in order to continue to pay the interest. Wait a second were going to cut out services at the same time when almost no one no Homeowners Insurance is covering the checks that are going to have to be written here now, i deal with i have a fabulous no insurer companies that are at all in trouble insurers themselves have single digit billions why is that . They dont cover flood what is the u. S. Government going to do . Ten years ago, the checks would have come out. Now were dealing with a situation where the republicans are very stingy. We have a debt ceiling to worry about. The president will go down there and say this has got to be the greatest reconstruction in history because the president is given to hyperbole, greatest recovery, faster than katrina, than ever. That requires money. Where is it coming from . Its not allstate. Its not travelers their exposure, from what i can tell, is still single digit billions and my numbers are more accurate than others, if i can say that. Well move on to retail in a moment and i know your numbers are. This debt ceiling issue, you know, talking about north decreea i have a feeling were going to end up talking was it in a tweet . No, it was in a statement, i believe, that the president did say im going to not unless i get funding for my wall yeah. Sticking point. Im not going to assent to a ceiling hike. Houston has to be rebuilt and rebuilt with federal money the numbers im getting from the reinsurers, indeed diesh presented last night katrina the worst case and katrina is in play. Katrina was, what 100 its in play . Now were talking roughly 0. No, for the feds. New orleanian. The feds will have to step in at the same time as the budget ceiling, where theres no plan for stronger euro, north korean threats, budget ceiling debate going to start raging very soon. Lets say after everybody gets back after labor day although youve got congress in and out. At the same time you have an apple launch, Constant Currency numbers that are now greater Constant Currency numbers. Now theyre moving the right way. Right. Press releases, though, actually they never seem to mention in the press release when its going their way. Big british business. Well look at that around the bell lets get on to earnings this morning that are at least catching our eye of course, starting with best buy. It was a beat on both the top and bottom line. Stores up 5. 5 you may look at the stock and go why is it down finish line is plummeting. Small market cap but is also a tell for a larger story when it comes to athletic footwear, outerwear. The retailer cut its profit forecast for the kurpt currenta and poison pill. Who will want to take part in that thing everybody is selling but somebody may want to buy. Finish line talk about how nikes innovation. Nikes two largest categories are continuing a level of deceleration people have been talking about how nike doesnt have a refresh. I would come out and say maybe were finally at the age where the jordans arent working. Running their course, huh finally. My 15yearold, i dont even know what hes got bunch of nikes on his feet not all at the same time. It seems to have finally run out. Speaking of sara eisen, who follows this from cnbc yes, cnbcs own sara eisen will join me at 10 00. Obviously, we talk a lot about mall traffic. Right. And the decline there footlocker reported not a great number a few weeks back. Terrible number. And adidas is killing it. They are killing it less. I was on one of the customer calls. Im talking about a category slowdown the main category that had been really great i dont want to write off all apparel. Pbh had an amazing quarter thats shirts and ties but thats also calvin klein and its Tommy Hilfiger but thats europe they made a big move into europe, china. Nike lacks a killer shoe 70 of finishline, 71 of finishline is nike its impossible to have any other read through thats a big dow stock, david. Its a not countered by United Health that did an acquisition thats going to be positive. Dav david, its racheon. Youre jumping the gun here thats not until 9 25. Lets circle back to best buy. The stock moved up after the numbers. The Conference Call sales comp number in this world, i would think, would be reenjoy joic rejoiced. They said this is not the new normal, much better than 5 . Highly competitive Fourth Quarter and, remember, when you hear competitive you always have to think about what mr. Gannett said on macys, that the Fourth Quarter could be promotional as this Conference Call goes on, the stock sinks because i think hes just saying, listen, lets not get ahead of ourselves. 4 revenue growth, moving up their target from what had been 2. 5 , percentagewise. Give me a fight the cfo moments ago said we are also expect increase in operating margins to moderate over time. In general, everyone read that as we reinvest in the business david, theyre spending more but not getting necessarily the return i come back and say i like what they said, its strong computing, wearables, smart home, mobile, appliances david, the connected home is a theme here. Yeah. Dont forget the big picture couple of years ago, we kept talking about, what was it, showrooming . What was that term how this was nothing more than a showroom to buy things on amazon now a 19 billion market value managed to turn around a company that, frankly, you and i sat here and questionedity ability to operate in this environment which has only become more competitive. Did it with service lot of these devices got so big that you needed them. Need advice. You get that 72 screen, which the wife totally vetoed. That just meant i would never leave for saturday and sunday during football season. I hear you. You couldnt just put it up. What did you go with then 52. Come on you couldnt even get to 60 . I live in a stalinist regime. Thats terrible. The geek squad is good. Remember, this stock took a hit when amazon said they were doing geek squad then amazon said eggs and milk simon says amazon. Categories theyre playing tough on in whole foods are categories that costco has often competed in taking aim from getgo. Interesting interesting. Thats not the reason best buy on the Conference Call being much more tepid. Finishline saying be careful, nike read through costco i dont have much to give thats positive this morning i just dont. Youve given us a lot not to mention you told us what the key to this market is, 14 minutes early. Im saying a lot of things wrong. If you want premium oil that, posted price is not what youre paying its like raw stores in burlington when it comes to oil, okay speaking of energy, when we come back, Hurricane Harvey or Tropical Storm harvey now expected to dump more rain in the houston area could get up to 50 inches. Well talk about the storms impact on refiners well take you live to texas, of course another look at futures. Were headed for a lower open. More squasquawk on the streete weomba ce ck where to get in. Where to get out. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Were continuing to follow, of course, latest developments on the gulf coast in the wake of Hurricane HarveyPresident Trump is on his way to survey the damage. And braving the rain down there quite some time, bringing us uptodate on everything involving energy brian . I think theres been more rain in the last two days, david, than ive seen in my entire life combined as you can see, its clearly still raining here basically everything from north of galveston to houston is, if not under water, is at risk of being under water, has been under water or is impassable as we drove around extensively yesterday, were lucky to find the one road that was open were going to crest northward of this and how far we can get, see if anybody needs help up there. A lot of stuff happening outside of houston, guys that aside, economic story is one that cnbc will tell. It is big. We hit the refinery story a lot. A few new developments since the last time i was on the air reuters reporting that the 3,000 barrel a day in beaumont, texas, we know its been running at reduced rates. Apparently its running at more reduced rates. Technological stuff there. Again, that is reuters reporting, one to watch. We continue to reach out to motiva, saudi eramco, 6,000 a d day. Reduced output and marathon petroleum, 460,000 barrels were trying to confirm and theyre not giving any information. Marathon if youre listening, people need to know. Youve talked about a lot of these different angles refineries shut down were going to wait to see if more are going to shut down. Theres no word on when anything is going to open because nothing has changed. Nothing has gotten better. Its just rained more. Port of houston remains closedment im going to introduce a word to you guys i dont know if youre familiar with the word shoaling squad truck theyre going to go out to help some people. Galveston is starting to flood in parts army corps of engineer truck trying to get to the building but cant get there because the roads are being flooded. Shoaling is when storm brings in silt and dirt and raises up the bottom these ships will come within a foot or two of the bottom of the sea. It comes up, you create a new problem so you dont know how the bottom looks so it makes it tough. Lot of things are fluid. And when the army corps of engineers cant get to their building, you know thats an issue. Yep yep. Brian, wow do you get to dry off at all you dont just have to stand there the whole time, right . No. Listen, were fine galveston, as you can see, is getting worse. Were going to try to drive up a little bit north we were there sunday where the flooding is, theres a lot of people that need help 18,000 people under mandatory eebee vac wags order i dont think you could get dry if youre anywhere as you can see, guys, it hasnt stopped raining in four days and its not going to change. Brian, thank you. Heaviest rain weve felt in two days. I remember watching yesterday. It wasnt raining nearly as hard as what youre dealing with right now. Well be checking in with you, of course, next hour and every hour key point he has made many times, jim, its about the employees being able to get to the facilities as much as anything else. Right right. We dont have a current update from valero. Theyre saying their under gulf refineries continue to operate corpus christi, no but im wondering theyve been the guy who has given me the best information now. Lets take a quick break. Well come back to cramers mad shs count you down to the opening bell than your health. So if youre on medicare or will be soon, you may want more than parts a and b heres why. Medicare only covers about 80 of your part b medical expenses. The rest is up to you. You might want to consider an aarp Medicare Supplement insurance plan, insured by unitedhealthcare Insurance Company. Like any Medicare Supplement insurance plan, these help pick up some of what medicare doesnt pay. And, these plans let you choose any doctor or hospital that accepts medicare patients. 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They did have accounting issues that are now behind them. When it comes out and the smoke clears, theyre doing okay david, i think whats going to happen is people will say this stock was up more initially wait a second. Where does hain fit in, in what many people feel will be the suppression of price increases hain has always worked very well with whole foods does that mean hell work well with amazon . We dont know. What we do know is theyre doing okay. Doing all right. Yesterday we saw the beginning of what i would regard as your dividend does not protect you anymore. Why because people are so concerned about what amazon is going to do. Mongolese has been very heavy here not that they have much of a dividend just beware that this Consumer Products group could these guys get sold its funny theres so much chatter about these kinds of Companies Potentially being consolidation fodder. Its a good question but he doesnt have one big product. No. He has a lot of products irwin loves rung hain celestial. Does irwin have a choice . Hes not a controlled shareholder. No. In the end its like you could get anybody. Activist as they were an engaged capital. Until you had the accounting problems, irwin was doing great. Theyre in the past. I dont want to continue to reference them now that theyve solved them. I think we have to go forward. The issue is natural, organic, still strong category. Whole foods, we dont know what theyre going to do. Okay. Of course, well have the opening bell a few minutes from now. We are looking for a down open stay with us on squawk on the street. Youre watching cnbcs squawk on the street you already told me what the key to this market is. Its ratheon why . It offers your best defense against missiles if you want to see when the overall futures bring down stocks that are attractive, thats the one to watch. It would probably be up four, five points if it werent for the overall futures selling. Futures drive everything down, machines, algorithms i think its wrong because the euro is very, very strong versus the dollar but thats the stock that would recover first. Best buy not recover first 2 , 3 going forward. Under promise, over deliver. You got it. Hes also a magician has had an amazing comeback in life i just want to wish him the best. There it is, opening bell for this tuesday you can see that the real time in change at hq will have a lot of red on it at the big boar