Points that happened with markets closing at their session lows. Weakness across the board. A lot of different sectors under pressure financials, materials and Consumer Staples all down by more than 1 well see what happens this morning. Futures indicated up this morning. Overnight in asia, the nikkei ended down by about a quarter of a percentage point the hang seng up by. 1 and the shanghai composite was flat and in europe where theres active trading taking place theres green arrows across the board. The biggest gainer of the three major averages is the cac up 1. 4 but you see gains of better than 1 for the ftse and dax as well take a look at whats happening with treasuries. Right now the ten year is yielding 1. 588 . So the yield picking up just a little bit the two year yielding 1. 539. Lowes is solidly higher on the numbers here 215 adjusted versus estimates of 2. 01 on better than expected revenue. A little bit anyway. The revenue is 20. 9 expected and 20. 94 to 20. 99 and then for adjusted earnings for the year, the forecast is 545 to 565 and the estimate is 558 so that brackets that. Full year comp sales up 3 after posting, i think, 2 or 2. 3 2. 3 was the same store sales number in the most recent Second Quarter. Total sa to total sales up 2 and expect that to get better all the numbers, the Senior Analyst that was here yesterday, dont adjust your tv sets. Its the same guy. You were talking to home depot yesterday. A lot of similar things here the comp sales are about a percentage point below home depots, right . And actually the outlook about, i think home depot did three and was indicating four for the year this is 2. 3 and indicating 3 for the year so Comp Store Sales arent quite as good but overall number, i thought you said yesterday home depot was taking market share. This was pretty good here. Both Home Improvement retailers are doing pretty well, no . Well, one thing, im reading this very quickly but it seems as though as im thinking about we always compare lowes to home depot and vice versa, the lowes u. S. Comp 3. 2, thats a tenth of a percentage point better than what home depot did. So one thing i will say is making positive comments like we heard from home depot yesterday. He said despite lumber inflation and difficult weather were pleased we delivered Comp Store Sales in 15 geographic regions of the United States this is a solid economic background and continued momentum executing on the retail fundamentals. Despite lumber prices. Theyre still seeing a Strong Economy and it happened in all 15 geographic regions. If youre looking for any signal as to what this means for the economy, consumer looks good and this is another home retailer doing well. I agree with that becky this is another positive data point for the u. S. Consumer. We have all been waiting now and i talk a lot about this on the show, big turn around potential at lowes. Lowes has lagged for years. Looking at this report quickly, looking at the last couple of reports, it seems under the guidance of the new ceo, lowes is getting its act together and frankly, if were right here and this continues this stock has a long ways to run is this a better buy than home depot because of the val valuation of the turn around potential . I think so. The dream scenario theres more than 10 in earnings per share at lowes its very simple math. I have 135 price target but the key here with home depot and lowes, lowes has been under for a long time. At least 5 below those of home depot. Theres a lot of slack. What about the geographic location of stores isnt that another hit against them they dont have the same distribution isnt that why theyre under owned . I always thought executional skills were weaker but if you want full geography you have to do depot. Thats a piece of it. Its very true that home depot has generally speaking better locations because going back to that 5 comment i made, thats maybe 2 points of that the other three is simple well not simple but store level execution. I have to own both Going Forward. I cant get enough exposure anymore. I have to have the executional upside of a lowes now Institutional Investors always underowned this thing. Is this the turning point . I think so. The way im recommending is you own them both. Home depot is a very high Quality Company and undervalued stock. Lowes turn around opportunity so its two different type of investment vehicles but i dont think youd be hurt owning both of them here. Brian, thank you. Thank you. What is the are you embalming people before you came in or something. Joe, im always trying to bring it fashion forward when i come here, im always proud of that and im featuring a new watch. He wore all black for the watch. Its a halloween situation. Im going to bring you guys forward with that, you have to start to match with what youre wearing. I would never wear a black shirt you would have to take me dragging and kicking. Joe, i looked in the mirror this morning with this watch on and i said to myself, you look spectacular. You have to be honest with yourself. You say that to yourself. I think he did. The only reason i kind of like it, no one will remember but maybe you remember paladin, he was cool. He wore all black. Theres nothing new in fashion, youre just bringing back old ideas and making them new again. Some people dont like when i talk about things. I dont mind. You can beat me up. Im not beating you up. Im giving you the attention that you crave so much. I dont crave it. You bring it forward i wear this because i know its interesting. Do you think if your name is mr. Wonderful that if you wear grim reaper black from head to toe. The whole mr. Wonderful thing is just truth in advertising, thats all. Thats like calling a bald guy curly. It is. Bring it on bring it on. Were going to come back with a nickname for him. Im going to need you today because theyre going to talk about seinfeld is on board with what you say on this. He is if you cant look at that cynically. I think its interesting that the bankers are saying, all right, you got us. We have been scum bags for years. There are forces attacking capitalism and im here to help you defend. You got us. All right. So farce were concerned we really have taken this profit incentive and shareholder value thing to the extreme because you saw we caused the financial crisis so now, now were trying to be good guys. Theyre one of a piece. Theyre not at odds. Did you read the journal piece today . He says you do as much as you can. Obviously but then you try to were going to talk to seinfeld later but he remembers when it started the reason they went with it and the reason he came out with that was it going against corporate do gooders trying to do things that were good social responsibility but didnt help their manages and didnt manage their business well and as a result the fed did more harm. It implies that its back to the profits are bad, ceos are greedy and somehow it implies that if you try to enhance your own value somehow thats counter to doing good by your employees and its not they go hand in hand when you run an effective business that keeps employees their jobs and it helps them compete globally. Thats why i said to you that theyre one of a piece i dont think youre that far away from me. These guys are barbarians. Trying to solve all of the c problems on the income statement of a company is a mistake. The whole idea of this thing is a straw man solving a problem thats not there. I think its being misinterpreted we can talk about all of it. Youre misinterpreting it. In other Corporate News this morning, walmart says that fires i want to hear your can you stay here for a second i want your take on this story fires at 7 of its stores were called by tesla solar panels theyre suing tesla for breach of contract, gross negligence and failure to live up to industry standards tesla and walmart has been partners on clean energy for years. More than 240 stores have had tesla Solar Systems installed. Walmarts complaint list lists thousands of dollars in expenses with repairs and damage to merchandise. You cover walmart. My team does. I have covered it in the past. I know it. I thought it was a bold thing for them to sue tesla over this. Theyre not i thought it was a Long Time Coming they had 7 fires before they bothered to sue and they want them taken off the other stores. They store the energy at night. But it also suggests theres a larger battle fight going on between these two companies in a way that im not sure i understood. Theres something bigger here because this would normally not happen. Exactly. I agree with you. My guess would be the bigger could just be that tesla is refusing to take this stuff out. If youve had fires at 7 stores i wouldnt want it on my stores either. You dont have the right to return the inventory soprobabl this is the way you litigate a settleme settlement. But what i imagine is at tesla what you want to take the product back to fix it or return it or whatever for whatever reason theyre not doing it. Once you ship out a panel with a lithium battery you dont want to see it come home. I am also surprised that given who walmart is that tesla wouldnt want to make this right. Do you think theyre scared that walmart is suing them i dont think so. Well see the president says we are far away from a recession but floated some ideas to stimulate the economy including tax cuts after saying that there were no tax cuts and he wants the tax cuts well talk about greenland too while were at it. Well do it all when we come back as we head to a break take a look at the biggest premarket winners and losers in the dow. Im professional stylist calyann barnett, and i know that style starts from the ground up. For a lot of teens, shoes matter. The right kicks, make the outfit. Kids like to make a statement, they want that wow factor. And for parents, you want to pick shoes that theyre going to wear over and over again. So i put together some of my favorite kicks for the new school year. When it comes to back to school shopping, your year starts at dicks. How you watch it does too. Tv just keeps getting better. This is xfinity x1. Featuring the Emmy Awardwinning voice remote. Streaming Services Without changing passwords and input. Live sports with realtime stats and scores. Access to the most 4k content. And your movies and shows to go. The best tv experience is the best tv value. Xfinity x1. Simple. Easy. Awesome. Xfinity. The future of awesome. Its mixed messages from the white house. President trump is thinking about a payroll tax cut a day after the white house denied a report saying that it was considering that during an exchange with the press yesterday the president floated a number of ideas to try to stimulate the economy including lowering Capital Gains taxes by indexing gains to inflation. A lot of people have been talking about indexing for many years and its something that i am certainly thinking about. I can say that a majority of the people in the white house they like indexing. Its something that im thinking about. Payroll taxes, i have been thinking about them for a long time whether or not we do it now or not is not being done because of recession. President trump also rejected the idea that the u. S. Economy is close to recession and took the opportunity to bash the Federal Reserve. Were very far from a recession. If the fed would do its job wed have a tremendous spurt of growth the fed is psychologically important. If the fed would do its job which it has done poorly over the last year and a half, you would see a burst of growth like you have never seen before. President trump said the fed raised rates too quickly and waited too long to pivot to cut rates. Well be hearing from the fed tomorrow coverage includes interviews and its all leading up to fed chair jay powells big speech on friday. Lets talk about the feds messaging, the odds of recession and the market response. Chris is here, portfolio manager. Also the president of pain Capital Management you heard what the president had to say its not exactly a new thought what is your sense in terms of what theyre going to do for the rest of the year do you think were going to do something new in the next 24 hours . I dont think we need a rate cut. But the economy is rocking right now. Its rocking . I keep bringing the stories saying theres a recession coming. Thats why im here this morning but lets just look at it we have over 2 gdp. Thats been the average for the last ten years wages are going up unemployment is low. Its as good as it gets. You gave me a look like i was crazy. Do you think think a recession was coming i was just viewing cash flow for 52 domestic small caps yesterday which i get every month. Theres no recession coming. Good. I hope youre right. Theyre trying to interpret the future of a much heavier trade war. Do most kic companies are on fire its unbelievable whats happening. Would it be a mistake to reduce rates then . I dont think we need a rate cut here. You dont i understand what the president is doing at the least hes keeping the fed on their back heels here because because hes changing policy that was never the mandate of the fed. Inflation and employment, thats what they should be worried about and here theyre saying its because of trade wars. Jump in. Do i think they should cut rates . Theyre going to cut rates because theyre looking at a global Interest Rate market putting pressure on our markets here i dont think were near a recession. I think what were seeing is a deceleration and a lot of the Small Cap Companies are still doing well but its collapsing the supply chains are compressing with whats going on with huawei and others, people are redirecting where theyre having to put their investment. How does that narrative fit with your Small Businesses the concern is there. I see no evidence of that. Who cares. Lets keep kweezing them out of existence. Im okay with that. But if youre a component supplier you have to readjust, right . That compression is occurring but theyre beginning to talk about 2020 already because i think next year is going to be very good. Youre in an Election Year you have a budget deal thats already in place do you think that we go ahead in december . Do you think the president looks at that and says im not putting on additional tariffs and threatening my chance . Its probably unlikely but i want a good deal i think as you have spoken for years we need a good deal. We need protection of ip and i think the Tech Companies are going to benefit from that it keeps on today this is going to hurt them and i think at the end of the day, theyre sitting around saying we have to workout a deal on this and maybe that deal happens before the end of the year maybe it happens before the election. President trump keeps saying theres shortterm pain, if theres shortterm pain so be it. We dont have shortterm pain yet. Why are we talking about a recession if we dont have shortterm pain. I dont know why. Theres no evidence of a recession. When you go and look at whats going on in core america. But we dont want one we dont want one for sure . We keep bringing it up just because people are talking about it, right . We keep bringing it up because we have the ten year and we had the inversion. We had two primetime specials. I know. But trump has not suggested it. Also talking about a recession at this point. Also talking about a payroll tax. Im just trying to act like we are but thats what i cant figure out. The retailers heard bad news for ten years and at this point theyre so scared thats why theyre saving and thats only to keep them in better shape. You would say there are some people that do want a recession. We know who there are. Im sure theres people that want a recession he said it flat out. You probably wanted a recession for other political leaders. If you have weaker Economic Activity what do you have a year from now you are to compress now a year from now going into the election and i think its calculated. All the times that you didnt believe the employment numbers were as good as they were. Do you remember when you would question i was hoping for a recession . I dont know what you were hoping for all im doing is analyzing the situation. Thank you for joining us. Good to see you. When we come back facebook is launching a new tool that let you track what companies learn about you from your browsing habits but you cant use it unless you live in ireland the details are next later, dont miss our interview with the bank of america ceo well be talking to him about the health of the u. S. Economy and responsibility of corporations all coming up at 8 40 a. M. Eastern time and well be right back. In the last year, there were three victims of cybercrime every second. 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Time right now for the executive edge facebook has announced plans to give users more control over their data it launched a new tool that allows people to see and control information that facebook has gathered about their browsing habits outside of the social network. Its called off facebook activity it allows users to view the apps that share customer information with facebook and disconnect their account if they want the move is a risk for facebook which depends on that data